Tesla Plans $20 Billion AI Push as Elon Musk Abandons Traditional Car Business
23 Sources
[1]
Musk Is Fueling Tesla by Torching Piles of Cash
Tesla plans to invest about $2 billion in xAI, Musk's own artificial intelligence venture, and will burn a lot of cash this year, with a capex budget of $20 billion-plus. Elon Musk, ever attuned to the political zeitgeist, has updated Tesla Inc.'s mission to "amazing abundance." It is the kind of
[2]
Tesla plans $20 billion capital spending spree in push beyond human-driven cars
This video file cannot be played.(Error Code: 102630) LOS ANGELES, Jan 28 (Reuters) - Tesla (TSLA.O), opens new tab plans to more than double capital spending to a record high of more than $20 billion this year - but little of it will go to its traditional business of selling electric vehicles to
[3]
Davos-Musk expects Europe, China to approve Tesla's FSD system next month
Jan 22 (Reuters) - Tesla (TSLA.O), opens new tab is likely to win regulatory approval in Europe and China for its Full Self-Driving system as early as next month, CEO Elon Musk said on Thursday, as the electric automaker looks to boost software revenue amid slowing vehicle sales. The approvals
[4]
Tesla profit plunges as AI expenses pile up and sales fall
Why it matters: Tesla has ambitions to become an AI powerhouse, but meanwhile it needs EV revenue to pay the bills. Driving the news: The automaker's net income fell 61% to $840 million in the fourth quarter, compared with a year earlier. * Revenue declined 3%, to $24.9 billion. * Operating
[5]
Elon Musk pivots Tesla to robotics and AI as car business flails
Musk's optimism for Optimus robot demand help EV maker beat quarterly expectations despite first-ever yearly revenue decline Tesla's most recent quarterly earnings report showed slumping vehicle sales and declining revenue, as the company's CEO, Elon Musk, pins the company's futures on AI and
[6]
You might actually be able to buy a Tesla robot in 2027
Elon Musk promises Optimus humanoid robots will go on sale by year's end, if reliability and safety checks out Tesla CEO Elon Musk has once again laid out an ambitious timeline for the company's long-awaited humanoid robot, Optimus. Speaking at the World Economic Forum in Davos, Musk said Tesla
[7]
Elon Musk Predicts AI Will Outpace Human Intelligence as Early as This Year
Musk said electricity generation, not chips or models, is the main bottleneck slowing AI deployment. Elon Musk said Thursday that artificial intelligence could surpass human intelligence as soon as this year, arguing that progress toward artificial general intelligence is accelerating faster than
[8]
Tesla earnings top estimates as Musk pivots company from cars to robots
Tesla earnings top estimates as Musk pivots company from cars to robots Shares in Tesla Inc. were up slightly in after-hours trading today after the company beat expectations in its fiscal fourth quarter and Chief Executive Officer Elon Musk announced major changes that will shift Tesla's identity
[9]
Tesla to sell Optimus robots to public next year, Musk says
Tesla will probably sell its Optimus robots to the public by the end of next year, according to CEO Elon Musk, who's said the carmaker's fortunes will be increasingly dependent on humanoid machines. The company is already using some of the robots to do simple tasks in its factory, Musk said
[10]
Tesla Investors Are Eager to Hear Elon Musk Talk About Everything But EVs
Tesla shareholders want answers on Musk's growing empire, from SpaceX's IPO plans to Optimus robots and Robotaxi in Austin. Tesla is scheduled to report earnings tomorrow (Jan. 28). But the electric carmaker's shareholders are less interested in quarterly margins than in hearing Elon Musk talk
[11]
Elon Musk is fueling Tesla by torching piles of cash
Tesla plans a massive investment boost, doubling its budget for autonomous vehicles, robots and AI. This comes despite recent weak financial results. The company is also investing heavily in Elon Musk's AI venture, xAI. Tesla aims for future abundance, but significant cash burn is expected this
[12]
Elon Musk Says Tesla Could Start Selling Humanoid Robots Next Year, Gene Munster Calls It A 'Slight Positive' For This Reason - Reddit (NYSE:RDDT), Tesla (NASDAQ:TSLA)
On Thursday, Elon Musk gave wide-ranging remarks that included new timelines for Tesla Inc. (NASDAQ:TSLA) humanoid robot and Full Self-Driving software. Musk Teases Optimus Sales Timeline At Davos Making a surprise debut at the World Economic Forum in Davos, Musk said Tesla could begin selling
[13]
Tesla Stock Investors Just Got Good News From CEO Elon Musk About Robotaxis and Robots
CEO Elon Musk recently provided encouraging updates on Tesla's autonomous driving and humanoid robotics technology. Tesla (TSLA 0.99%) lost substantial market share in electric cars during the past year due to increased competition, brand backlash, and the discontinuation of federal tax credits.
[14]
Tesla plots $20 billion spending spree to build Elon Musk's AI future
The capital expenditure plans laid out Wednesday - roughly twice as much as Wall Street was expecting - will support production expansion at multiple factories, scaling up the nascent robotaxi business and building out AI infrastructure. Tesla also revealed plans to discontinue the Model S and X
[15]
Tesla Bets Future Growth on Optimus Robots and Autonomous Vehicles | PYMNTS.com
The company said it will convert the Fremont, California, factory space used for Model S and Model X into a dedicated Optimus facility, targeting long-term capacity of 1 million robots per year. Elon Musk said the move reflects a broader transition toward autonomy and robotics as Tesla's next
[16]
This "Magnificent Seven" Stock Has a Secret Weapon for 2026: Meet Optimus
The stuff of science fiction is quickly becoming reality. Iconic electric vehicle maker Tesla (TSLA 0.99%) is now making AI-controlled humanoid robots that will be available for purchase by the public before the end of 2027. That's what Tesla CEO Elon Musk said at this year's World Economic Forum,
[17]
Musk to sell humanoid robots to public by end of next year - The Korea Times
SpaceX and xAI CEO Elon Musk speaks during a panel discussion during the 56th annual meeting of the World Economic Forum (WEF), in Davos, Switzerland, Thursday. EPA-Yonhap DAVOS, Switzerland -- Elon Musk sees his humanoid robots hitting the market next year, one of several "optimistic" forecasts
[18]
Elon Musk Says Tesla Will Sell Humanoid Robots to Public by Late 2027 | PYMNTS.com
"That's when we are confident that it's very high reliability, very high safety, and the range of functionality is also very high -- you can basically ask it to do anything you'd like," Musk said while speaking at the World Economic Forum in Davos, Switzerland. Tesla already has Optimus humanoid
[19]
Davos 2026: Humanoid robots a must for Musk by next year as Tesla CEO eyes Europe, China nod for self-driving system
Tesla plans to offer its Optimus robots to consumers by the end of next year. Elon Musk also anticipates regulatory approval for the company's Full Self-Driving system in Europe and China within the next month. These developments come as Tesla seeks to diversify revenue streams beyond its electric
[20]
Elon Musk says AI will outsmart humans by the end of this year By Investing.com
Investing.com -- Tesla CEO Elon Musk outlined his vision for AI, robotics, and space exploration during a conversation with BlackRock CEO Larry Fink at the World Economic Forum in Davos. Musk revealed that Tesla plans to begin selling humanoid robots to the public by the end of next year, once the
[21]
AI could be smarter than all of humanity in five years, says Elon Musk
Elon Musk believes artificial intelligence will soon be smarter than all humans combined. This advancement will reshape jobs and life's purpose. Musk also noted energy shortages could limit AI growth. He suggested space could become the cheapest location for AI systems. Tesla's humanoid robots and
[22]
Tesla plans $20 billion capital spending spree in push beyond human-driven cars
LOS ANGELES, Jan 28 (Reuters) - Tesla plans to more than double capital spending to a record high of more than $20 billion this year - but little of it will go to its traditional business of selling electric vehicles to human drivers. The company, which last year lost its global EV sales crown to
[23]
Tesla aims to release Optimus robots publicly by end of next year, Elon Musk says
He claimed the robots are already doing simple tasks inside Tesla factories, although there is no evidence to confirm this. Elon Musk announced at the World Economic Forum in Davos that Tesla plans to sell its Optimus humanoid robot to the public by the end of next year. The announcement quickly
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Tesla announced capital spending of over $20 billion in 2026, more than double last year's budget, to fund autonomous vehicles and humanoid robots. The strategic shift comes as the company reported a 61% profit plunge and its first-ever annual revenue decline, with vehicle deliveries falling 16% year-over-year in the fourth quarter.
Tesla Doubles Down on Artificial Intelligence With Record Capital Spending
Tesla plans to invest over $20 billion in capital spending this year, more than doubling its previous budget and marking a strategic shift away from traditional electric vehicle manufacturing toward artificial intelligence and robotics
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. Elon Musk announced during Wednesday's earnings call that most of the record investment will fund production lines for the Cybercab autonomous vehicle, Optimus humanoid robots, the long-promised Tesla semi-truck, and plants for battery and lithium production2
. The $20 billion figure represents more than double the $8.5 billion in capital expenditure last year and significantly exceeds the prior record of $11.3 billion in 20242
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Source: Digit
This aggressive investment strategy arrives as Tesla faces mounting financial pressure. The company's net income fell 61% to $840 million in the fourth quarter compared with a year earlier, while revenue declined 3% to $24.9 billion
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. Operating expenses soared 39% to $3.6 billion, sending operating margins down to 5.7% from 6.2% a year earlier4
. Tesla reported its first-ever decline in total revenue, losing 3% year-over-year, with total automotive revenues dropping 11% in 20255
.Slowing Vehicle Sales Drive Strategic Pivot to AI-Driven Technologies
The company's vehicle deliveries fell 16% year-over-year in the fourth quarter, with total deliveries dropping to 1.64 million in 2025
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. Tesla lost its global EV sales crown to China's BYD, which saw sales grow 28% in 2025 as it offered consumers less expensive alternatives across multiple markets2
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. The company faced a consumer backlash in early 2025 to Musk's involvement with the Trump administration, though it later saw an influx of sales from buyers seeking the federal EV tax credit before it expired at the end of September4
.Highlighting the dramatic pivot, Musk announced Tesla would end production of its Model X SUV and Model S sedans next quarter, using the California factory space to manufacture humanoid robots instead
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. The earnings report described Tesla's transition "from a hardware-centric business to a physical AI company"5
. Scott Acheychek, chief operating officer of REX Financial, argued that Tesla's car business was no longer the main focus, stating "the bigger story is the business model transition now underway" as Tesla focuses on autonomous driving2
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Source: SiliconANGLE
Robotaxis and Humanoid Robots Anchor Investment Strategy
Tesla plans to begin production of Optimus before the end of 2026, with Musk stating the company will sell the robots to the public by the end of 2027
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. Musk has claimed Optimus would be "the biggest product of all time" and said the robots, along with autonomous vehicles, would usher in "a world where there is no poverty"5
. Production of the Cybercab, a fully autonomous vehicle without a steering wheel or pedals, is planned to begin by the end of June1
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.When pressed for specifics on how many Optimus robots are currently working at Tesla factories and what tasks they perform, Musk demurred, stating the technology was still in the research and development stage
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. This sits awkwardly with plans for mass production in less than 12 months. Industry experts note that scaling humanoid robots for real-world use is technically complex, partly due to a lack of data needed to train the AI models that underpin robot behavior3
.Related Stories
Regulatory Approval and xAI Investment Fuel AI Powerhouse Ambitions
Musk expects Europe and China to approve Tesla's Full Self-Driving system as early as next month, which would be crucial for generating software revenue outside the U.S.
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. The approvals face challenges from tougher vehicle safety rules and fragmented regulatory frameworks in Europe compared to the U.S.3
. Tesla also announced it was investing $2 billion in preferred shares of xAI, Musk's own artificial intelligence venture1
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Source: Market Screener
Based on consensus forecasts, the capital expenditure budget implies Tesla burning around $6 billion of cash this year, making 2026 Tesla's first year of negative free cash flow since 2018
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. With $44 billion on its balance sheet, Tesla can afford the spending spree, though Chief Financial Officer Vaibhav Taneja signaled the company could look to pay for investments "through more debt or other means"1
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. Despite the financial challenges, Tesla shares rose more than 3% in after-hours trading, reflecting investor focus on the company's future rather than current finances4
. The company's valuation far exceeds any other automaker, putting it more in league with major tech companies, with much of that value hanging on investors' beliefs that Musk will deliver on promises of delivering Robotaxis and humanoid robots backed by investment in artificial intelligence2
.References
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