Goldman Sachs lowered its price target on Tesla following the company’s fourth-quarter earnings, citing expectations for negative free cash flow in 2026 as the automaker ramps up capital expenditures to fund its artificial intelligence ambitions. The company’s CapEx reached a new record in 2024 at $11.3 billion, then declined to $8.5 billion in 2025. “We now expect negative overall FCF [Free Cash Flow] this year for Tesla,” Delaney wrote in a note released after the results. Tesla sold 1.585 million Model 3 and Model Y vehicles in 2025, accounting for 96.9% of total deliveries. The remaining 3.1% came from other models including Model S, Model X, and Cybertruck.