Tesla Stock Nears $300 After Earnings Miss Trigger Sharp Market Selloff
Tesla’s capital expenditure reached about $5.8 billion during the quarter. Free cash flow turned negative by roughly $1.1 billion, marking the company’s first quarterly cash burn in more than two years. Tesla also expects annual capital spending to exceed $25 billion.
The company continues to fund robotaxi development, artificial intelligence infrastructure, next-generation manufacturing and the . Meanwhile, investors are waiting for clearer revenue growth from these projects as costs rise in the near term.
The concern spread beyond Tesla. Alphabet shares also fell as investors reviewed higher artificial intelligence spending plans. It raised its 2026 capital expenditure guidance to between $195 billion and $205 billion, up from its earlier range.
The NASDAQ moved lower as investors reduced exposure to high-growth technology stocks. Risk-off trading also reached digital assets. Bitcoin fell about 1.8% toward $64,800, while Ether dropped around 3% to nearly $1,870. Concerns over technology spending affected several risk markets during the same trading period.
