- Tesla plans capital expenditures exceeding $25 billion in 2026, focusing on autonomy, robotics, and AI infrastructure.
- Analysts at TD Cowen flagged an upcoming catalyst with potential late-2024 or early-2025 “eyes-off” Full Self-Driving deployment.
- The company warned that accelerating spending could turn free cash flow negative later this year, even as Q1 earnings beat expectations.
- Short seller Jim Chanos questioned the quality of quarterly profits, noting reliance on one-time items.
- Retail sentiment on Stocktwits remained “extremely bullish” ahead of the earnings report.
Shares of Tesla, Inc. (TSLA) slid over 2% in premarket trading Thursday as investors digested a massive $25 billion capex plan aimed at widening its lead in AI and robotics. The electric vehicle maker reported Q1 adjusted earnings per share of $0.41, beating the $0.36 consensus estimate, while revenue matched expectations at $22.39 billion.
Analyst Gene Munster of Deepwater Asset Management argued this aggressive spending pushes Tesla further ahead in “physical AI.” Consequently, he noted its 19.2% automotive gross margin, excluding credits, was a clear quarterly positive. However, he cautioned that breakthroughs for FSD, Robotaxi, and Optimus robotics are not imminent.
Meanwhile, TD Cowen reiterated a ‘Buy’ rating with a $490 price target, citing a catalyst-heavy phase ahead. The firm specifically highlighted the potential for “eyes-off” FSD capability as a major development, according to reports. Separately, short seller Jim Chanos contended most operating income came from non-recurring items like tariff recognitions and warranty reversals.
CEO Elon Musk confirmed vehicles with Hardware 3 lack the capability for unsupervised FSD, prompting planned upgrade offers. The company also confirmed over $250 million in tariff-related benefits, primarily in its energy segment. Consequently, Tesla warned that free cash flow could turn negative for the rest of 2024 as its investment ramp accelerates.
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