Tesla raised its 2026 capital expenditure forecast to more than $25 billion. This figure marks a significant increase from the previous $20 billion estimate. The company reported first-quarter adjusted earnings of 41 cents per share, surpassing analyst projections. Management intends to use the funds to accelerate investments in autonomous transport, humanoid robotics, and artificial intelligence.
CFO Vaibhav Taneja expects this multi-year investment phase to result in negative free cash flow for 2026. Despite the spending plan, Tesla generated $1.4 billion in positive free cash flow during the first quarter. This result surprised analysts who had anticipated a cash burn. The company also reported its highest first-quarter order backlog in over two years as global demand rebounds.
Tesla shares fell slightly in after-hours trading following the news. CEO Elon Musk is reorienting the company toward future growth drivers beyond its core electric vehicle business. The company still plans for a significant increase in total vehicle production.