Tesla beats third-quarter estimates and cuts its 2026 spending forecast to about $20 billion

Tesla reported third-quarter revenue of $28.05 billion and adjusted earnings of 48 cents a share after the US market close on Wednesday 21 October, above analysts’ estimates of $27.9 billion and 43 cents compiled by LSEG, CNBC reported. Revenue was roughly flat compared with a year earlier, according to the company’s quarterly update.

Net income attributable to shareholders under standard accounting rules was $787 million, or 22 cents a share, according to the company’s quarterly update. Tesla delivered 486,532 vehicles in the quarter and reported free cash flow of $1.53 billion.

Tesla said it now expects capital spending of about $20 billion in 2026, down from its previous forecast of more than $25 billion, Reuters reported. The company did not say where it would spend less.

In its update, Tesla said its FSD (Supervised) driver-assistance system was bought with more than 75% of new vehicles delivered in North America, and that it began offering Robotaxi rides in Cybercab vehicles in Austin, Texas, on 3 September. On the earnings call, chief executive Elon Musk said the Robotaxi business would start to become “noticeable” in the second quarter of 2027, CNBC reported.

Asked about a possible merger with SpaceX, which Musk discussed on SpaceX’s results call a day earlier, he said: “I think I said everything that should be said yesterday.”

Tesla shares fell more than 3% in extended trading on Wednesday, according to CNBC, and were volatile in Thursday’s session, Yahoo Finance reported.

See also: SpaceX and Tesla form special committees to explore a merger.