US Stocks Move: Tesla Rises 3% in Pre-market Trading, but Aggressive Spending Plan Raises Cash Flow Concerns

Glonghui, January 29｜Tesla shares rose 3% in pre-market trading, after the company achieved better-than-expected profitability thanks to a higher-than-expected profit margin. The company announced it will invest $2 billion in xAI, a private artificial intelligence company founded by CEO Elon Musk, and will shift part of its automotive production capacity to robot manufacturing. In addition, Tesla expects capital expenditures to exceed $20 billion in 2026. Evercore analysts pointed out that the unexpected capital expenditure plan will lead to negative free cash flow for the company, and this news also caused the pre-market stock price gains to narrow slightly. Analysts also stated that the sustainability of the company's high profit margin remains unclear.