Business · Companies · 1 hr ago
Tesla beats adjusted earnings estimates and cuts 2026 capex plan
Tesla beat estimates for adjusted earnings in the third quarter, although its revenue was slightly below analysts’ expectations.
The company reported $28.05 billion in revenue and adjusted earnings of 48 cents per share.
Free cash flow was $1.53 billion, far above the estimate of a $4.92 billion outflow.
Tesla also lowered its full-year capital spending forecast to $20 billion from $25 billion, saying it would fund most spending from operating cash flows.
The planned investment includes Optimus robot production, AI computing, the Cybercab and a chip plant Tesla is building with SpaceX.
Tesla said Optimus has started production at its Fremont factory, while Elon Musk said reaching a production rate of 20,000 robots a week could take at least a year.
Tesla’s results will shape its plans for AI and robotics, while the company also reported 1.74 million active full self-driving subscriptions.
Tesla reported third-quarter adjusted earnings per share of $0.48, beating the $0.44 estimate.
Revenue was $28.05 billion, slightly below the Bloomberg consensus of $28.13 billion.
Free cash flow was $1.53 billion, compared with Wall Street’s estimated outflow of $4.92 billion.
Tesla lowered its full-year capital expenditure guidance to $20 billion from $25 billion.
The company said its Optimus robot had started production at its Fremont factory.
- Who
- Tesla.
- What
- The company beat estimates for adjusted third-quarter earnings and lowered its full-year capital expenditure plan.
- When
- The results were reported on October 21, 2026.
- Where
- Not stated.
- Why
- Not stated.
This story does not have two clearly opposing sides.
Tesla reported adjusted earnings per share of $0.48 and free cash flow of $1.53 billion.
Tesla updated its full-year capital expenditure guidance to $20 billion, down from $25 billion.
- Adjusted EPS
- $0.48, compared with a $0.44 estimate
- Revenue
- $28.05 billion, compared with a $28.13 billion Bloomberg consensus
- Free cash flow
- $1.53 billion, compared with an estimated outflow of $4.92 billion
- Full-year capex guidance
- $20 billion, down from $25 billion
- Optimus production
- Started at Tesla’s Fremont factory
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What people are saying
managing our capital deployment efficiently, and plan to fund [capex] primarily from our cash flows from operations
I think capex is actually ending up being a little lower than we anticipated, but we'll start to become more meaningful next year. And then noticeable in the tens of billions in '28