INTC
TSLA
Tesla’s “trust us” phase just got pricier
Tesla told investors it’s no longer thinking in terms of a $20 billion capex year. CFO Vaibhav Taneja said 2026 spending is now expected to top $25 billion as the company leans harder into AI infrastructure, robotaxi tech, and Optimus.
That’s not just a bigger budget. It’s Tesla basically saying, “We’re building the future, please ignore the dent in the wallet for now.” Taneja also said the company has started ordering equipment for a research semiconductor fab in Austin and for solar manufacturing gear, which hints that Tesla’s ambitions are stretching across computing and energy, not just cars.
The catch? Cash doesn’t fall from the sky
The market heard the message loud and clear: more spending today, more pressure on free cash flow tomorrow. Taneja warned Tesla expects negative free cash flow for the rest of the year as it ramps infrastructure and production capacity.
That’s the kind of line that can make investors do the math twice. Elon Musk tried to soften the blow by framing the spending as a long-term bet on a bigger future revenue stream, but Tesla shares still slipped in after-hours trading as the capex number sank in.
Intel gets a little love, too
Musk also said Tesla plans to use Intel’s 14A manufacturing process for its in-house AI chips, which gave Intel’s stock a boost in after-hours trading. So while Tesla was getting punished for opening the spigot, Intel was getting a little halo effect from the same conversation.
Big picture: Tesla is looking less like a car company trying to add software and more like a rolling AI industrial project. That may be exciting, but the bill is coming due in public.