Tesla lowers 2026 spending forecast to $20 billion as SpaceX deal remains possible

Tesla said October 21 that it now expects about $20 billion in capital spending during 2026, replacing an earlier projection above $25 billion. The company did not identify which investments would receive less funding. The revision comes as Elon Musk considers a possible combination of Tesla and SpaceX.

Capital spending reached $4.73 billion during the third quarter, more than twice the amount a year earlier. Tesla generated $1.53 billion in free cash flow, compared with a $1.09 billion deficit in the preceding quarter. Revenue totaled $28.05 billion, little changed from a year earlier, while net income declined 43% to $787 million.

Tesla continues to expand the robotics and autonomous-driving businesses central to Musk's plans. The company said it started manufacturing Optimus robots in Fremont, California, and introduced Cybercab rides in Austin on September 3. Tesla also plans to reach 400 megawatts of AI training capacity before the year ends, supporting software development for vehicles and humanoid robots.

The potential SpaceX transaction remains under discussion. Musk said October 20 that both companies had established special committees to examine a combination, but he offered no additional details during Tesla's earnings call the following day. Tesla has yet to explain how its reduced spending forecast will affect individual projects.