AUSTIN, Texas, April 23, 2026, 15:22 CDT
Tesla raised its 2026 capital-spending plan to more than $25 billion, putting Elon Musk’s robotaxi, AI-chip and Optimus robot push ahead of a first-quarter profit rebound in the investor debate. The company said the spending will go into AI initiatives, compute infrastructure, data centers, manufacturing and research lines, company-operated AI-enabled assets, and its retail, service and charging network.
That matters now because Tesla is asking shareholders to underwrite businesses that are still early, while its main car operation remains exposed to price pressure and tougher rivals. Tesla shares were recently down 3.5% at $373.62, even after the company reported higher profit and positive free cash flow, the cash left after capital spending.
Tesla reported net income attributable to common stockholders of $477 million for the quarter, up 17% from a year earlier. Revenue rose 16% to $22.39 billion, while free cash flow increased to $1.44 billion and cash, equivalents and short-term investments reached $44.74 billion.
The car business gave Tesla some cover, but not a clean one. Deliveries rose 6% from a weak year-earlier quarter to 358,023 vehicles, while energy generation and storage revenue fell 12% and services and other revenue rose 42%. Automotive revenue was $16.23 billion.
The filing showed how fast the bill is rising. Capital expenditure — money spent on plants, equipment and other long-lived assets — was $2.49 billion in the quarter, up from $1.49 billion a year earlier, and Tesla said the pace may vary with project priorities, milestones, production shifts and new projects.
Tesla said paid robotaxi miles nearly doubled from the prior quarter and that it expanded unsupervised rides in Austin while launching them in Dallas and Houston in April. Full Self-Driving (Supervised), Tesla’s driver-assistance software, still requires active driver supervision and does not make the vehicle autonomous; the company said it received approval to deploy it in the Netherlands.
The infrastructure push runs beyond taxis. Tesla said it added more than 2,200 net new Supercharger stalls in the quarter, growing that network 19% year-on-year, and said a partnership with SpaceX aims to build what it called the “largest chip fab ever,” referring to a semiconductor plant.
Musk kept the focus on Optimus, the humanoid robot Tesla wants to build for homes and businesses. “I think Optimus will be our biggest product,” he said on the earnings call, according to AP; Tesla’s update said a first-generation Optimus line in Fremont is designed for 1 million robots a year, with a second-generation line in Texas designed for long-term annual capacity of 10 million. AP News
Mamta Valechha, an analyst at Quilter Cheviot, said the higher full-year spending plan implies “a significant step-up,” about three times last year’s level, with Tesla likely to burn cash for the rest of the year. She said Tesla’s “physical AI” ventures offer large revenue potential, but commercialisation still looks some way off. euronews
Reuters quoted Morningstar analyst Seth Goldstein as saying the spending depends on whether investors believe Musk can make Optimus a value-creating platform; otherwise, the capex does not make sense. Greg Basich, associate director at Counterpoint Research, told Reuters that Tesla is “being pulled in too many different directions at once.” Reuters
The competitive backdrop is not still. BYD has overtaken Tesla as the world’s largest electric-vehicle maker, AP reported, while Alphabet’s Waymo and Amazon’s Zoox are accelerating robotaxi efforts, Reuters said. Tesla is trying to defend its EV base while also chasing the higher-margin software and fleet revenue Musk says will define the company.
But the plan can slip. Musk struck a more cautious tone on robotaxis, Reuters reported, saying Tesla is taking a cautious approach to avoid injuries or fatalities and that the limiting factor for expansion is “rigorous validation.” Reuters also reported Tesla expects negative free cash flow for the rest of the year after the first-quarter surplus. Reuters
The next test is execution, not another forecast. Tesla said Cybercab, Tesla Semi and Megapack 3 remain on schedule for volume production starting in 2026, and that first-generation Optimus production lines are being installed; investors will be watching whether those projects begin to offset the heavier spending before the cash drain grows.
