Meta’s bigger budget, Tesla’s smaller one leave Wall Street uneasy

Meta increased its 2026 capital expenditure forecast by $5 billion to $135-145 billion, investing heavily in AI infrastructure despite a free cash flow deficit. Tesla reduced its 2026 capex forecast from over $25 billion to about $20 billion, raising investor concerns about its AI and robotics ambitions. Shares of both companies fell as investors questioned the financial returns of their AI investments.