Tesla, Alphabet Slide as AI Capex Guidance Jumps to $25B and $195B–$205B, Alphabet FCF Turns Negative

Tesla closed down 14.5% and Alphabet down 6.9% on July 23 after each raised AI-heavy capex guidance on their Q2 calls: Alphabet lifted full-year property-and-equipment spend to $195B-$205B from a prior $180B-$190B, with Q2 alone at $44.9B, while Tesla pushed its 2026 capex above $25B, roughly triple 2025's $8.5B. Alphabet's free cash flow turned negative for the first time in decades and the company signaled $80B-$85B of equity raises, sharpening the 'spending vs. return' debate around the AI buildout. The Nasdaq Composite dropped 2.15% and the S&P 500 fell 1.21% on the tape.