Tesla’s spending on AI and robotics trails expectations, clouding outlook
Heavy spending is needed to help Tesla reorient operations around futuristic business lines, a shift seen as justifying a merger with SpaceX.
Tesla's expenditure on artificial intelligence and robotics has fallen short of Wall Street's expectations, raising doubts over Elon Musk's vision to convert the electric vehicle manufacturer into a tech powerhouse. In the third quarter, the company's capital outlays amounted to $4.73 billion, according to a statement released on Wednesday. Analysts, however, had anticipated a significantly higher figure of $7.95 billion, based on estimates.
During a conference call with analysts, the company's Chief Financial Officer, Vaibhav Taneja, disclosed that Tesla has revised its 2026 capital expenditure target to $20 billion, a decrease from the initial projection of over $25 billion. The investment in AI and robotics totaled $8.3 billion during the first half of the year.
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