Tesla plans capital expenditures exceeding $25 billion for 2026, nearly tripling the $9 billion spent in the previous year. These funds are allocated to AI infrastructure, custom chip development, and robotaxi services.
The company ceased production of the Model S and Model X in early 2026. Manufacturing lines are being repurposed to produce the Optimus humanoid robot. Elon Musk now dedicates approximately half of earnings call time to AI and robotics, compared to 15-20% in 2022.
In January 2026, Tesla invested $2 billion into xAI, a venture controlled by Elon Musk. This decision faced criticism from shareholders concerned about potential conflicts of interest.
Tesla reported 2025 revenue of $94.83 billion, a 3% decline. Analysts project negative free cash flow for 2026 due to the planned capital expenditure. The company has also lost its lead in total electric vehicle sales to BYD.
