Author: vitorcherulli

  • PayPal Board Rejects $53 Billion Takeover Proposal as Too Low, Seeks Improved Offer

    PayPal Board Rejects $53 Billion Takeover Proposal as Too Low, Seeks Improved Offer

    PayPal Holdings is currently reviewing a $53 billion takeover bid from Stripe and Advent International. The proposal values the payments giant at $60.50 per share, but the board has indicated that the price is too low. Directors are now deciding whether to enter formal negotiations or push for a significantly higher valuation.

    The review comes as PayPal faces slower growth, fierce competition, and a series of leadership changes. Once valued at nearly $360 billion during the 2021 digital commerce boom, the company’s market cap has dropped sharply as rivals have gained ground in payments and digital wallets. Investors are watching closely to see if a revised offer can unlock more value from PayPal’s assets, including Venmo and its massive global consumer network.

    Board Questions the Current Takeover Bid

    According to sources familiar with the talks, the board does not support the offer in its current form. Some directors question whether PayPal should even engage in negotiations at $60.50 per share, believing that the company’s latest turnaround plan could justify a higher valuation. Stripe and Advent may have room to improve their bid, having secured $17 billion in equity commitments and arranged approximately $50 billion in bank financing, giving them capacity to raise the price.

    PayPal has not commented publicly on the takeover discussions. Chief Executive Enrique Lores, who took charge in March after the company replaced Alex Chriss, has also remained silent on the proposal. The leadership change is part of another turnaround effort aimed at restoring growth.

    Slower Growth Adds Pressure on PayPal

    PayPal built its reputation on online checkout and digital payments, but rivals such as Apple, Google, Samsung, Stripe, and Affirm have introduced new payment tools and banking services. PayPal has been slower to move into mobile payments, digital banking, and artificial intelligence. Apple Pay now leads PayPal in the U.S. digital wallet market, holding a ten-point advantage according to PYMNTS Intelligence. PayPal also trails several competitors in agentic commerce, where software can complete purchases on behalf of consumers.

    Growth has weakened across Venmo and other key services. Buy now, pay later products have not delivered the expected momentum. Meanwhile, PayPal’s customer base has flattened, so management now focuses more on earnings from existing users. The company admitted in February that “the pace of change and execution was not in line” with board expectations, as it announced yet another leadership change.

    Earnings May Shape the Next Move

    PayPal’s upcoming quarterly results could significantly influence both the board and the bidders. Weak results might increase pressure to negotiate, while stronger figures could support the board’s push for a higher price and improve its bargaining position. Analysts see few likely rival bidders. Morgan Stanley called the Stripe and Advent proposal the “most credible path to value realisation,” citing strong wallet competition and PayPal’s mature customer base.

    Deal advisers are also studying PayPal’s separate businesses, including Venmo, merchant checkout services, and more than 400 million consumer accounts, to assess whether these assets carry more value together or through separate sales. The board must now compare the offer with its turnaround targets. Stripe and Advent must decide whether a higher bid can win support. PayPal’s earnings report will provide the next major test for both sides.

  • Google and YouTube Release Free Digital Wellbeing Guidebook for Indian Families to Foster Healthy Tech Habits

    Google and YouTube Release Free Digital Wellbeing Guidebook for Indian Families to Foster Healthy Tech Habits

    Google and YouTube have unveiled the Digital Wellbeing Guidebook for Indian Families, a free resource designed to help parents, caregivers, and educators guide children through the digital world. Developed with input from mental health, child development, and education experts, the guidebook addresses the unique needs of Indian households.

    Tailored for Indian Households

    The guidebook acknowledges that many Indian families share smartphones and tablets among members. Instead of simply advocating reduced screen time, it offers practical strategies for navigating privacy, child safety, and age-appropriate content in shared-device environments. Google emphasizes ongoing parent-child conversations and collaborative boundary-setting rather than unilateral restrictions.

    Expert-Backed Recommendations

    Created in consultation with specialists from the National Institute of Mental Health and Neurosciences (NIMHANS), Fortis Healthcare, and education experts, the guidebook provides actionable tips such as establishing technology-free zones, creating family media agreements, and modeling positive online behavior. The aim is to translate research into everyday practices.

    Built-In Safety Features

    The resource highlights Google’s existing digital wellbeing tools, including supervised YouTube and YouTube Kids sessions, Family Link parental controls, the Family Center, Take a Break reminders, Bedtime and School Time modes, and the ‘Who’s Watching’ feature. This last tool enables multiple family members to use the same device while preserving individual privacy and enhancing child safety.

    Promoting Responsible Technology Use

    With this guidebook, Google and YouTube encourage families to focus on responsible technology use rather than solely limiting screen time. Through open communication, realistic expectations, and thoughtful decision-making, the companies believe families can build healthy digital habits that integrate seamlessly into daily life.

    The guidebook is available for free download and represents a significant step toward empowering Indian families to navigate the digital age safely and effectively.

  • XRP Eyes Bullish Breakout Above $1.13 as Analyst Targets $1.35 Rally

    XRP Eyes Bullish Breakout Above $1.13 as Analyst Targets $1.35 Rally

    XRP moved closer to a key breakout level on Monday as analyst Ali Martinez tracked a symmetrical triangle on the hourly chart. He said a move above $1.13 could confirm bullish momentum and open a path toward $1.35.

    The token has traded near $1.09 to $1.11 throughout July. Martinez said the narrow range has kept XRP inside a technical structure that traders often watch for a sharp move.

    XRP Charts Point to a Key Resistance Test

    Martinez shared an animated chart showing XRP consolidating inside a symmetrical triangle. He said the monthly chart also displayed a TD Sequential buy signal. He identified another buy signal near $1.109 last week. XRP has risen 3.3% since that signal, according to the figures included in his update.

    His latest projection placed the potential move near 20%. A successful breakout above $1.13 could therefore send XRP toward the $1.30 to $1.35 area.

    Technical Indicators Show Improving Momentum

    TradingView data showed that the Moving Average Convergence Divergence (MACD) indicator issued a buy reading. The indicator compares two exponential moving averages to track changes in price momentum. Meanwhile, the Bull Bear Power indicator remained neutral. The Relative Strength Index (RSI) also stayed neutral and hovered slightly above 50, showing neither side held firm control.

    XRP futures open interest rose more than 6% over one week, according to Coinglass. The spot price also gained 5.58% during the same period.

    Smart money sentiment also turned bullish. That measure tracks the outlook and capital positioning linked to institutional investors and other large market participants.

    Schwartz Explains Early XRP and Ethereum Sales

    Ripple CTO Emeritus David Schwartz said he regrets selling some of his early XRP and Ethereum holdings. He addressed the sales in a July 20 post on X. Schwartz said he sold XRP near $0.10 and later sold Ethereum near $1. He explained that he and his wife agreed to reduce exposure whenever their holdings reached new highs.

    He previously said XRP looked expensive at $0.10 during its early years. At the time, he also viewed a move to $0.25 as unlikely. Schwartz also sold 40,000 ETH at about $1.05 each. In May, he said he would have held the tokens if he had seen a small chance of Ethereum reaching thousands of dollars.

    He said a perceived 1% chance of Ethereum reaching $2,368 would have changed his decision. Instead, he sold because he considered such an increase highly unlikely. His early sales also included Bitcoin. Schwartz has repeatedly described those decisions as part of a broader effort to limit volatility and manage personal financial risk.

    Conclusion

    XRP remains near the $1.13 resistance level as technical indicators and rising futures interest support a possible move toward $1.35. Meanwhile, David Schwartz’s early token sales show how risk management shaped major crypto decisions. Traders should watch for a confirmed breakout before assessing further upside.

  • Goldman Sachs Warns Brent Crude Could Surge Past $120 on Strait of Hormuz Disruptions

    Goldman Sachs Warns Brent Crude Could Surge Past $120 on Strait of Hormuz Disruptions

    Brent crude oil prices could surge above $120 per barrel in the fourth quarter if disruptions in the Strait of Hormuz persist, according to Goldman Sachs. The investment bank, however, clarified that such a sharp rally is not its base-case expectation.

    The warning comes as global oil markets remain on edge amid renewed geopolitical tensions in the Middle East. Brent crude recently climbed above $91 a barrel following fresh hostilities involving the US and Iran, raising concerns over potential supply disruptions.

    Shipping Routes Under Pressure

    Market sentiment has also been affected by threats from Iran-backed Houthi rebels in Yemen to impose a blockade on Saudi oil shipments. The warning has added to concerns over the security of key energy routes.

    With disruptions at the Strait of Hormuz, the Red Sea has become an increasingly important alternative for transporting crude from the Persian Gulf to global markets. Any disruption along this route could further tighten supplies and push prices higher.

    In a note dated July 20, Goldman Sachs analysts said escalating tensions in the region and a sharp decline in Persian Gulf oil flows had already contributed to the recent rebound in crude prices.

    Base Case Still Points to Lower Prices

    Despite highlighting the upside risks, Goldman Sachs maintained that its central forecast assumes geopolitical tensions gradually ease. Under that scenario, the bank expects Brent crude to average around $80 per barrel in the fourth quarter and decline to about $75 per barrel next year.

    The analysts cautioned, however, that risks remain skewed to the upside because of ongoing shipping disruptions through the Strait of Hormuz and the possibility of further interruptions in the Red Sea.

    China Demand May Limit the Rally

    Goldman Sachs noted that declining global oil inventories during the second quarter have left the market more exposed to supply shocks. At the same time, weaker crude imports by China and greater demand elasticity could help contain any sustained price spike.

    For investors seeking protection from prolonged geopolitical uncertainty linked to the Middle East and Russia, the bank recommended taking a long position in the European diesel timespread between December 2026 and March 2027.

    According to the analysts, diesel markets were already tight before the latest conflict, with continued Ukrainian attacks on Russian refineries, hurricane risks, extreme summer temperatures and refinery maintenance delays adding to supply concerns.

    Brent crude futures were last trading at $88.54 per barrel. Earlier this year, prices briefly surged above $126 a barrel during the initial phase of the US-Iran conflict.

  • Ethereum Approaches $2,000 as Bullish Momentum Encounters Key Resistance

    Ethereum Approaches $2,000 as Bullish Momentum Encounters Key Resistance

    Ethereum has surged toward the $2,000 mark following a strong 4.53% daily gain, fueled by robust spot demand. The price now sits above its short-term moving averages, signaling an improved short-term trend. However, technical indicators are flashing mixed signals, and traders are closely watching resistance near $1,968 and the 200-day moving average at $2,173 for confirmation of a sustained uptrend.

    Momentum Indicators Send Mixed Signals

    Ethereum’s Relative Strength Index (RSI) reached 65, indicating strong demand without entering overbought territory. The 12-period exponential moving average remains above the 26-period average, supporting the recent recovery. However, the Moving Average Convergence Divergence (MACD) histogram has flattened near zero, suggesting upward momentum is no longer expanding.

    Meanwhile, the Stochastic oscillator climbed to 95.57, with its signal line at 76.45, implying that ETH may still attempt another short-term push. The Bollinger Band reading shows mounting pressure, with Ethereum trading near the upper band of $1,944.50. A loss of buying pressure could send the price toward the middle band near $1,817, which also aligns with identified support at $1,817.75.

    Spot Demand Drives Rally as Open Interest Falls

    Ethereum derivatives open interest declined 2.23% over 24 hours while the spot price climbed, pointing toward short covering and direct spot-market demand. The decline in open interest indicates that leveraged traders did not aggressively open new long positions during the rally, reducing the role of leverage in the move.

    The funding rate stood at 0.0026%, indicating nearly balanced positioning between bulls and bears, which also reduces immediate liquidation pressure. The taker buy-to-sell ratio reached 1.36, showing that buyers placed more aggressive market orders than sellers. Retail accounts held 63.4% long positions, while leading Binance futures accounts held 58.4% long exposure, revealing stronger bullish conviction among retail traders.

    Ethereum Faces Resistance Below $2,000

    Ethereum’s immediate resistance stands at $1,967.70, followed by the key psychological level near $1,999.21. A daily close above $2,000 could shift attention toward the 200-day moving average at $2,173. The bullish scenario carries a 40% probability over the next 72 hours, requiring sustained volume, a break above $1,967.70, and firm consolidation above $2,000.

    Under that scenario, the 200-day simple moving average would become the next major price target, about 12% above the current market price. The bearish scenario carries a 60% probability during the same period, expecting resistance near the upper Bollinger Band to stop the advance within 24 to 48 hours. A rejection could first push Ethereum toward the $1,908.48 pivot, then support at $1,876.97, before opening a path toward $1,817. Holding $1,817 would preserve Ethereum’s improving medium-term structure.

    Ethereum’s 4.53% surge and strong spot demand have moved the asset close to $2,000, while short-term averages support the recovery. However, weak MACD momentum, an overextended Stochastic, and resistance near $1,968 raise pullback risks. Traders should watch daily closes above $2,000 or support near $1,817 before acting.

  • Google Fitbit Air Spotted on Amazon India: Expected Price, Features, and Launch Details

    Google Fitbit Air Spotted on Amazon India: Expected Price, Features, and Launch Details

    Google’s Fitbit Air may be arriving in India soon, as the device has appeared in an Amazon India listing. While the company has not officially announced a launch date, the listing strongly suggests that the wearable is close to release. Priced around $99.99 in the US, the Fitbit Air is expected to be positioned in the premium fitness tracker segment in India, with a speculated price range of Rs. 13,499 to Rs. 16,999.

    Fitbit Air: A Screenless Fitness Tracker

    Unlike most smartwatches, the Fitbit Air does not have a screen. Instead, it quietly records health data throughout the day. Users can check their health metrics through the Google Health app on their smartphone. This design choice prioritizes simplicity, comfort, and longer battery life over constant notifications.

    Pricing and Availability in India

    The Amazon listing hints at a launch in India, with the device likely releasing in the near future. The Fitbit Air will be compatible with both Android and iOS. Customers in India will also receive a three-month subscription to Google Health Premium, unlocking additional wellness features.

    Key Features and Google Health Integration

    The Fitbit Air will feature Google Health Coach, a personal trainer powered by Gemini AI. This AI can make personalized health recommendations based on the data it records. The tracker monitors heart rate, blood oxygen levels, sleep patterns, and other vitals. Notably, just five minutes of charging provides enough power for a full day of use. Available colors include Lavender, among others.

    Fitbit Air vs. Traditional Smartwatches

    Fitbit Air does not offer calling, a touchscreen, apps, or message alerts; it focuses solely on health and fitness tracking. This makes it ideal for users who want to monitor their health without the distractions of a smartwatch. For those who need calls, messages, and apps, a budget smartwatch may be a better fit. The Fitbit Air is best suited for people who prioritize health monitoring and simplicity.

  • Russia’s State Duma Advances Final Crypto Regulation Bill: Investor Limits, Licensing, and Cross-Border Rules

    Russia’s State Duma Advances Final Crypto Regulation Bill: Investor Limits, Licensing, and Cross-Border Rules

    Russia’s lower house of parliament, the State Duma, has moved the country’s comprehensive cryptocurrency regulation bill toward final approval. The draft law, titled ‘On Digital Currency and Digital Rights’ (No. 1194918-8), is scheduled for second and third readings on July 21, 2026, and aims to create a formal framework for digital assets in Russia.

    Investor Classification and Licensing

    The bill divides crypto investors into two categories: qualified and non-qualified. Non-qualified investors must pass a knowledge test to purchase approved cryptocurrencies and would face an annual purchase limit of 300,000 rubles through regulated intermediaries. Qualified investors would enjoy broader access and higher transaction limits.

    Licensed exchanges, brokers, custodians, and exchange operators would operate under the supervision of the Bank of Russia. Unlicensed firms would face restrictions after a planned transition period. The revised text removed a proposed rule requiring holders to report individual wallet addresses; instead, users would report balances and transaction volumes, a change lawmakers say reduces exposure of sensitive ownership information.

    Cross-Border Crypto Trade

    While the framework maintains Russia’s ban on crypto payments for ordinary goods and services—keeping the ruble as the sole legal tender—it permits digital assets for selected financial and international transactions. Russian exporters and importers can use cryptocurrencies for eligible foreign trade settlements, building on previous experimental legal regimes.

    Anatoly Aksakov, chair of the Duma Financial Market Committee, confirmed the schedule: “Tomorrow, July 21, we will adopt the law in the second and third readings.” The proposal also allows crypto-for-crypto exchanges through licensed platforms, certain private securities transactions, and blockchain network fees using digital assets.

    Eligible Cryptocurrencies

    Only cryptocurrencies meeting strict market and trading requirements can enter public exchange trading. According to Interfax, Bitcoin and Ethereum currently meet those proposed thresholds. The central bank could temporarily approve other assets for up to six months.

    Timeline and Next Steps

    State Duma approval is not the final step. The bill must next pass the Federation Council and receive President Vladimir Putin’s signature before becoming law. Officials have targeted September 1, 2026, for the main provisions to take effect, a delay from the original July 1 target following extended negotiations and multiple amendments.

    The framework would recognize crypto as property, bring trading into licensed channels, and establish reporting, custody, and supervision rules. Separate legislation would create penalties for violating the new market requirements. Finance Ministry estimates placed domestic crypto trading near 50 billion rubles daily earlier this year, much of it operating outside regulated channels.

  • Dogecoin Accumulation Hits Maximum Score as Breakout Pressure Intensifies

    Dogecoin Accumulation Hits Maximum Score as Breakout Pressure Intensifies

    Dogecoin holds near $0.07 as its accumulation score reaches 100. Whale purchases and futures activity are rising. A confirmed range breakout could revive targets near $0.65 and eventually above $1.25 if market participation strengthens further.

    Dogecoin remains near $0.07, while improving momentum, whale buying, and rising derivatives activity suggest pressure may be building inside its narrow trading range. Analyst Javon Marks also sees a wider cycle structure targeting $0.653 before a possible extension above $1.25. However, DOGE must hold support and escape its current range before those projections gain confirmation.

    Sideways Trading Builds a Wider Base

    DOGE is trading between about $0.0719 and $0.0730 as volatility stays unusually low. The narrow range shows that buyers and sellers have not gained firm control. Even so, the chart gives Dogecoin a maximum accumulation score of 100. This reading suggests buyers may be adding positions while price movement remains limited.

    At the same time, the relative strength index has moved toward its midpoint. Price has barely changed, which indicates that selling pressure has started to ease. The MACD histogram has also improved during the consolidation. However, volume remains weak, and the ADX still points to a ranging market.

    A clear move above $0.0730 could open the path toward $0.075 and $0.076. By contrast, a break below $0.0719 would weaken the accumulation setup.

    Cycle Pattern Revives Higher Price Targets

    Javon Marks views the current phase as post-breakout consolidation. His chart compares it with structures that appeared before Dogecoin’s major rallies in 2017 and 2021. Each earlier cycle followed a similar sequence. DOGE broke a descending trend, traded sideways for an extended period, and later entered a sharp expansion phase.

    The first major projection now sits near $0.653. This level stands close to Dogecoin’s previous cycle high and could place $0.70 within reach. A stronger advance could then support a projection above $1.25. However, the pattern still depends on DOGE holding long-term support and clearing its present range.

    Could the quiet price action mark another accumulation phase before volatility returns? For now, the setup remains a historical comparison rather than a confirmed breakout.

    Whale Buying and Leverage Increase

    Large Dogecoin holders acquired 200 million DOGE through Robinhood, according to an X post. The purchase carried an estimated value of about $14 million. The transaction added to evidence of large-wallet demand while DOGE traded sideways. Its impact will depend on whether those coins remain off exchanges or return for sale.

    Meanwhile, Dogecoin futures volume rose 114% to about $739.56 million. Open interest also increased 3.74% to roughly $1.08 billion. Rising volume and open interest show that traders added new exposure. CoinGlass data also shows liquidation clusters above and below the current price.

    These clusters could increase volatility if the price reaches either side. Broader market conditions offered some support, with Bitcoin above $64,000 and Ethereum above $1,870. XRP remained below $1.10, showing uneven performance among major cryptocurrencies. DOGE still needs stronger spot participation before its developing setup becomes more reliable.

  • GM Q2 Earnings Surpass Estimates, Automaker Boosts 2026 Profit Forecast

    GM Q2 Earnings Surpass Estimates, Automaker Boosts 2026 Profit Forecast

    General Motors posted stronger-than-expected second-quarter results on Tuesday and raised several full-year forecasts, supported by higher North American profit, lower warranty costs, and smaller EV losses.

    Revenue increased 1.9% year-over-year to $48.03 billion. Adjusted earnings reached $3.57 per share, topping estimates of around $3.20. Adjusted EBIT rose to $3.94 billion from $3.04 billion in the same period last year.

    GM Raises Full-Year Earnings Guidance

    GM now expects adjusted EBIT of $14 billion to $16 billion for 2026, up from the previous forecast of $13.5 billion to $15.5 billion. The company also lifted its adjusted earnings guidance to between $12 and $14 per share.

    The automaker increased its adjusted automotive free cash flow outlook to $9.5 billion–$11.5 billion, compared with the earlier range of $9 billion–$11 billion. Meanwhile, GM lowered its expected net income attributable to shareholders to between $8.4 billion and $9.8 billion.

    GM based its revised forecast on steady pricing, lower costs, and better EV results. The company expects pricing to rise about 0.5% and EV losses to improve by $1 billion to $1.5 billion compared with 2025.

    Tariff costs remain a factor. GM expects gross tariff costs of $2.5 billion to $3.5 billion, regulatory benefits of $500 million to $700 million, and commodity inflation of $1.5 billion to $2 billion.

    North American Business Drives Profit Growth

    GM’s North American unit posted an 8.6% adjusted EBIT margin, an increase of 2.5 percentage points from the same period last year. Strong demand for pickups and large SUVs supported regional results.

    “Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago,” said CEO Mary Barra. She added that GM continues to lower warranty costs, reduce EV losses, and improve efficiency.

    The company kept incentives below the industry average at 4.7% of the suggested retail price, versus the industry average of 6.3%. Average transaction prices exceeded $52,000 during the quarter. GM also reduced dealer inventory by 3% year-over-year, keeping it within the target range of 50 to 60 days. GMC Sierra sales rose 5% to a quarterly record of 95,147 vehicles.

    Vehicle Sales Fall as EV Demand Weakens

    GM sold about 715,000 vehicles in the United States during the quarter, a 4.2% decline from a year earlier. The company remained the country’s largest automaker by sales.

    GM attributed part of the decline to discontinued models, including the Cadillac XT4, Cadillac XT6, and Chevrolet Malibu. A weaker EV market, following the expiration of the federal tax credit, also reduced demand.

    Chevrolet Equinox EV sales fell 61.8%, Blazer EV sales dropped 68.1%, and GMC Hummer EV sales declined 56.8%. Still, GM held an estimated 13.5% to 14% share of the US EV market, trailing only Tesla.

    GM reported $4.5 billion in EV-related cash charges through the second quarter, with total EV-related charges reaching $7.2 billion this year. The company has recorded $10.9 billion in EV charges since the second half of 2025.

    CFO Paul Jacobson described consumer demand as “resilient” and noted that GM’s first-half earnings per share were 25% higher than any previous first-half result. However, high interest rates and vehicle prices continue to pressure affordability.

  • Tesla Q2 Deliveries Surge 25% as Robotaxi and Optimus Spending Strains Cash Flow

    Tesla Q2 Deliveries Surge 25% as Robotaxi and Optimus Spending Strains Cash Flow

    Tesla approaches its second-quarter earnings report with strong vehicle deliveries and higher expected revenue. However, rising spending on Robotaxi, Optimus, AI data centers, and Cybercab production could push free cash flow deep into negative territory.

    Wall Street expects Tesla Q2 revenue of $26.21 billion, up 16% from a year earlier. Analysts also forecast adjusted earnings of $0.50 per share and adjusted EBITDA of $4 billion.

    Tesla Q2 Deliveries Support Revenue Growth

    Tesla delivered 480,126 vehicles during the quarter, up 25% from a year earlier. The total also exceeded the Bloomberg consensus estimate of 397,466 vehicles by a wide margin.

    The new Model Y helped improve production after last year’s factory transition reduced output. Tesla also used lower prices across several markets, which supported demand and lifted deliveries.

    Energy storage deployments reached 13.5 gigawatt-hours during the quarter. This figure rose more than 50% from 8.8 gigawatt-hours in the first quarter.

    Regional sales trends moved in different directions. Cox Automotive expects Tesla’s US sales to fall 20% after the federal EV tax credit expired. Meanwhile, European registrations rose sharply, with Greater Europe up nearly 108% in May.

    Deutsche Bank analyst Edison Yu said, “International strength is doing the heavy lifting.” He identified Europe as the main driver, while China also supported results. Tesla also plans to raise production at its Berlin factory during 2026.

    Robotaxi and Optimus Spending Pressures Cash

    Tesla’s stronger deliveries may not prevent a steep drop in free cash flow. Company-compiled analyst estimates point to negative free cash flow of $3.254 billion for the quarter.

    Capital spending could reach $6.7 billion, more than double the level from a year earlier. Tesla generated nearly $5.6 billion in free cash flow during the same quarter last year.

    The company continues to spend on Optimus robot production, AI data centers, and Cybercab manufacturing. These projects require large upfront investment while commercial returns remain limited.

    Morgan Stanley analyst Andrew Percoco said investors still question whether Robotaxi and Optimus can advance fast enough. “As capex more than doubles and free cash flow turns negative,” he wrote. Investors want evidence that spending can build Tesla’s physical AI business.

    Tesla’s long-term valuation depends heavily on growth beyond vehicle sales. Therefore, the earnings call may focus on production timelines, technology progress, and spending plans for these projects.

    Tesla Earnings History Adds Caution

    Tesla shares have fallen about 16% this year as investors weigh stronger deliveries against higher spending. The stock also faces pressure from uncertainty around future earnings growth and cash generation.

    Recent earnings history may also shape expectations. Tesla has missed adjusted earnings-per-share estimates in five of the past eight quarters, according to Bloomberg data.

    The company’s international sales recovery offers support, while weaker US demand adds pressure. High capital spending adds another challenge as Tesla expands several projects at the same time.

    The quarterly update will give investors fresh details on automotive margins, energy revenue, and cash use. Management may also provide new targets for Robotaxi, Optimus, Cybercab, and AI infrastructure spending.

    Investors will compare those updates with delivery growth and regional sales trends. Any change in the full-year spending outlook could affect expectations for Tesla’s near-term cash position over the coming several quarters.