Market
Tesla raises spending plans, pours money into AI, chips and robots
YahooApr 23, 2026
STORY: Tesla has sharply raised its spending plan to more than $25 billion for the year, as CEO Elon Musk pours money into artificial intelligence, robotics and chips.:: FileOn a post-earnings call with analysts Wednesday, the billionaire said the moves were "well justified for a substantially increased future revenue stream."Shares in Tesla fell over 2% following the remarks. That reversed gains of up to 4% seen in extended trade earlier, after the company reported a positive free cash flow in the first quarter.:: TeslaTesla is in the middle of one of the most expensive bets in its history.Musk has pivoted the electric vehicle maker's focus to building AI-powered self-driving cabs and humanoid robots.With the raised spending plan, the company expects cash flow to turn negative again for the rest of 2026.First-quarter profit also topped Wall Street targets, in a sign that the electric vehicle maker was holding the line on costs in a difficult global environment.Tesla delivered fewer vehicles than Wall Street expected, but deliveries were still up about 6% from a year earlier.The firm's core automotive business has come under pressure as competitors introduce newer models, often at lower price points.
