I think Tesla and Meta’s earnings show that there is no single right approach to AI spending. $Tesla(TSLA.US) cutting it…

I think Tesla and Meta’s earnings show that there is no single right approach to AI spending. $Tesla(TSLA.US) cutting its capital expenditure target to around $20 billion while delivering positive free cash flow is encouraging, especially as profits declined about 43%. To me, this suggests Elon Musk is trying to balance long-term investments with financial discipline while Tesla continues developing FSD, Robotaxi, Optimus and AI infrastructure. However, I still want to see these projects translate into sustainable revenue and profits rather than relying only on future promises.

$Meta Platforms(META.US), on the other hand, is raising its capital expenditure floor to $135 billion, supported by 26% revenue growth. I understand why Mark Zuckerberg is willing to spend aggressively, as AI could strengthen advertising performance and create new growth opportunities, but the key question is whether the returns can justify such massive investments. Personally, I remain bullish on the long-term AI trend, but I prefer to judge companies by cash flow, execution and returns on invested capital. I will continue holding my Tesla position with a long-term perspective, while staying disciplined and avoiding the temptation to chase excitement around AI spending.