Tesla raises 2026 capital expenditure plan to $25 billion

Tesla plans to increase its capital expenditures to $25 billion in 2026, a figure three times higher than its historical annual spending, according to the company's first-quarter earnings report. The company had previously projected capital expenditures above $20 billion for 2026. The additional $5 billion reflects expanded investment in AI training, chip design, robotaxi operations and a new semiconductor research facility in Austin. Tesla's capital expenditures were $8.5 billion in 2025, $11.3 billion in 2024 and $8.9 billion in 2023. Chief Financial Officer Vaibhav Taneja said the increased spending will result in negative free cash flow for the remainder of the year. The company ended the first quarter with $44.7 billion in cash and short-term investments. Tesla also plans to begin building its Optimus humanoid robot at scale at its Fremont, California factory and has cleared ground for a dedicated Optimus manufacturing facility in Austin.