U.S. stocks move: Tesla plunged on October 22 as profits declined, capital expenditure was cut, and tech stocks weakened

Tesla’s October 22nd Sharp Decline Explained

Keywords: Profit decline, reduced capital expenditure, weak tech stocks

1. On October 21st, Tesla announced that third quarter revenue was basically flat year-on-year and slightly below expectations, with net profit attributable to shareholders falling by 43% year-on-year; automotive revenue declined 3% and energy storage revenue declined 16%, while operating expenses rose 39% year-on-year, reflecting ongoing pressure on main business growth and profitability.

2. During the October 21st earnings call, the company lowered its 2026 capital expenditure forecast to about $20 billion, and also stated that Robotaxi revenue is not expected to contribute until the middle to later part of 2027, and that customer deliveries of Optimus are targeted for the end of next year. Adjustments to investment plans and the lengthy timeline for new business commercialization add uncertainty to growth prospects.

3. On October 22nd, concerns over AI investment returns and rising oil prices pressured global tech stocks, with US stock index futures and Nasdaq futures moving lower, dragging down Tesla and other technology stocks.

(Disclaimer: This content is collected and summarized from public information using AI technology and is for reference only. It does not constitute investment advice.)