Tesla closed at $386.47 on the Nasdaq after a 3.4% intraday rally, only to slide 3.2% in extended trading, reflecting a 12% YTD decline versus the S&P 500’s 13% gain.
Revenue hit $28.05 billion, edging past the $27.9 billion estimate, while quarterly EPS climbed to $0.48 from the consensus $0.43. Automotive revenue fell 3% from the prior year, and the energy vertical dropped 16%.
Free cash flow plunged 62% year‑on‑year, and capex for the quarter reached $4.73 billion against analysts’ $7.95 billion forecast, even as the company announced a revised 2026 cap‑ex plan of $20 billion, down from the earlier $25 billion target.
Analysts warn that the cap‑ex cut will only be positive if it does not impede future growth, questioning whether the spending shift is merely seasonal or a prolonged ramp‑down. Musk highlighted that a SpaceX merger would require 50% shareholder approval, describing the hurdle as “quite a high hurdle.”
Looking ahead, Tesla’s board will review the updated cap‑ex budget before the next quarterly filing, and market participants are watching the SpaceX merger discussion for any shift in valuation dynamics.