Meta and Tesla Report Earnings Today as AI Spending Faces Wall Street Test

Meta and Tesla Report Earnings Today as AI Spending Faces Wall Street Test

Meta and Tesla report third-quarter results after the US market close on Wednesday, in what could be the biggest test yet of Wall Street's faith in Big Tech's AI spending spree. With doubts about AI returns already weighing on tech stocks — South Korea's KOSPI fell 3.7% this week on AI worries — the reaction could set the tone for risk assets including crypto.

Meta is the bigger test. The company expects 2026 capital expenditure of $130 billion to $145 billion, and analysts forecast about $63.3 billion in quarterly revenue, up roughly 24%, with earnings per share near $6.67, according to FactSet. Investors will also watch adoption of Meta's Muse personal assistant, which recently passed 10 million US downloads. In the second quarter, free cash flow fell to about $784 million, and a similar spending scare triggered a post-earnings selloff.

Tesla is expected to report earnings per share of $0.45 on revenue of about $27.9 billion, per FactSet. The company has confirmed 486,500 vehicle deliveries and 13.7 gigawatt-hours of energy storage deployed in the quarter, while margins and capital spending remain unknown until the report. SpaceX reported a day earlier, compressing three major tech earnings events into about 24 hours.

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