Tesla hikes 2026 capex to $25B, bets on FSD and robotics
Tesla hikes 2026 capex to $25B, bets on FSD and robotics
Tesla plans a $25 billion capex push for 2026, signaling mounting bets on FSD, robotics, and in-house chip tech as free cash flow dips.
Tesla is raising its capex plan for 2026 to $25 billion, roughly three times its historical spend. The move comes alongside signs the company will run negative free cash flow for the rest of the year as it funds a wave of ambitious bets.
The money is slated for factory expansions, robotics and AI initiatives, and an in-house chip fabrication effort, all part of Tesla's strategy to scale self-driving software, factory automation, and energy products.
Meanwhile, the company reported a Q1 revenue uptick driven by EV sales and FSD subscriptions, reflecting a push to monetize software and services even as capital spending grows. A notable one-liner from Elon Musk: he admits millions of Tesla owners need upgrades for true Full Self-Driving, a statement that could invite regulatory scrutiny after years of promising near-autonomous capability.
Analysts say the strategy could pay off if FSD and robotics scale, but investors will be watching margins and cash burn as the company pursues ambitious bets.
