Tesla is down about 3% on Thursday, April 23, 2026, as investors focus on a sharply higher 2026 spending plan following the company’s first-quarter earnings update and call. Tesla lifted its 2026 capital-expenditure outlook to more than $25 billion, and management indicated the heavier investment cadence should push free cash flow into negative territory for the remainder of 2026. (ir.tesla.com)

The capex hike is landing as a valuation and cash-generation issue rather than a near-term operating issue: Tesla’s Q1 results were strong enough to beat key expectations, but the bigger spending plan signals a more capital-intensive year ahead. The company is framing the higher investment as necessary to support autonomy/AI compute, robotics, and manufacturing expansion, which increases uncertainty around timing of returns and near-term cash conversion. (techcrunch.com)

Traders will be watching for more detail on the pace and categories of spending (including AI infrastructure and factory programs) and whether Tesla reiterates any guardrails around liquidity as free cash flow swings negative. Any added disclosure on project timelines and expected monetization for autonomy and robotics could determine whether today’s move stabilizes or extends. (techcrunch.com)