Electric vehicle maker Tesla plans to more than double its capital spending to over $20 billion this year, marking a major strategic shift away from its traditional business of selling cars driven by humans. The investment will focus largely on autonomous vehicles, humanoid robots, and battery-related infrastructure rather than conventional electric cars.
Chief executive Elon Musk said Tesla will end production of the Model S and Model X at its California facility, repurposing factory space for production of Optimus humanoid robots. Musk also said robot manufacturing would scale even more aggressively at Tesla’s Texas Gigafactory, calling 2026 a defining year for capital investment.
Most of the spending will go toward production lines for the Cybercab autonomous vehicle, the long-delayed Tesla Semi truck, Optimus robots, and new battery and lithium refining plants. Tesla’s finance leadership said the company has more than $44 billion in cash and investments available to fund the expansion, while future spending could involve additional borrowing.
Although Tesla remains heavily dependent on human-driven EV sales, its market valuation reflects investor belief in its autonomous driving and robotics ambitions. Analysts describe the move as a business model transition, positioning Tesla closer to major technology firms than traditional automakers.
Shares of Tesla slipped slightly in early trading, reflecting investor caution over the scale and risk of the spending push.
