Tesla Cuts Annual Capital Expenditure Target to $20 Billion

Tesla Inc. reduced its annual capital expenditure target to approximately $20 billion, down from a previous goal of over $25 billion. The company announced the spending cut following third-quarter earnings results that showed adjusted earnings of 48 cents per share, beating profit estimates, while revenue of $28.05 billion slightly missed expectations.

Chief Financial Officer Vaibhav Taneja stated that spending will continue to grow to support computing infrastructure, a new semiconductor plant, solar products, humanoid robot production, and the robotaxi fleet. However, the reduction in the annual guide has led analysts to question the timelines for the company's AI and robotics initiatives.

CEO Elon Musk tempered expectations for the Optimus humanoid robot, noting that hand design difficulties, training data requirements, and supply-chain challenges mean the project may not be fully resolved until the end of 2027.