Do You Think $Tesla(TSLA.US)Decision to Slash Its 2026 Capex is a Good Idea? 🌟🌟🌟Whether $Tesla(TSLA.US)decision to sl…
Do You Think $Tesla(TSLA.US)Decision to Slash Its 2026 Capex is a Good Idea?
🌟🌟🌟Whether $Tesla(TSLA.US)decision to slash its 2026 Capex forecast by 20% from USD 25 billion to USD 20 billion is a good idea, depends entirely on what kind of company you believe Tesla is.
The Bull Case:
By spending USD 4.7 billion on Capex in Q3 instead of USD 7.5 billion expected, Tesla has delivered a big surprise. It generated USD 1.53 billion in free cash flow which would give Tesla massive firepower and flexibility before it merges with $SpaceX(SPCX.US) if the merger goes through.
The Bear Case:
Tesla's premium valuation rests almost entirely on the promise that it is an AI and robotics powerhouse, not just a car manufacturer.
By pulling back on spending suggests less of an all -in approach to the AI arms race just as rivals are accelerating.
Lower Capex also strongly hints that mass producing Optimus humanoid robots schedule has been delayed to late 2027.
Dear Fellow investors, do you think the trimming of the Capex by Tesla is a Bull or Bear Case?
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