Tesla Stock Extends Declines. Two Reasons.
Tesla stock was down 1.8% in midday trading on Thursday after the company reported better-than-expected fourth-quarter numbers on Wednesday evening.
Investors, for the most part, seemed pleased with the report, with the stock up north of 3% in Wednesday after-hours trading. A couple of things, however, might be weighing on sentiment.
For starters, there is capital spending. Tesla plans to spend $20 billion to build out its AI ambitions in 2026. That’s a lot. Tesla typically spends less than $10 billion a year on capital spending. Wall Street was projecting 2026 capital spending of about $11 billion before the report.