Tesla Inc. (NASDAQ:TSLA) is sharply ramping up capital expenditures in 2026 as the company deepens its push into AI, autonomous vehicles and robotics.

$25 Billion CapEx

On the company's earnings call with analysts, CFO Vaibhav Taneja said Tesla now expects capital spending to exceed $25 billion this year, a significant increase from its previously outlined $20 billion plan. 

The revised outlook reflects accelerated investments in AI infrastructure and next-generation manufacturing capabilities.

"Our current expectation for 2026 is over $25 billion of CapEx … we’re further increasing our investment in AI-related initiatives, including the AI infrastructure to support robotaxi and the launch of Optimus," Taneja said on the call. 

The spending surge underscores Tesla's strategic pivot toward AI-driven platforms, including its robotaxi ambitions and Optimus program. 

Taneja added that Tesla has "already started placing orders for the research semiconductor fab in Austin and for solar manufacturing equipment," signaling expansion across both computing and energy segments.

However, the aggressive investment cycle is expected to weigh on near-term financials. 

Taneja warned the company anticipates "negative free cash flow for the rest of the year" as it scales infrastructure and production capacity.

CEO Elon Musk framed the elevated spending as a long-term value driver tied to AI-enabled revenue streams. 

He said the investments are "well justified" for what Musk described as a "substantially increased future revenue stream."

Intel’s Fab

Tesla's growing focus on AI infrastructure places it more directly in competition with major tech players investing heavily in compute, data centers and advanced semiconductor capabilities. 

That dynamic was reflected in after-hours trading, where Intel Corp. (NASDAQ:INTC) shares climbed roughly 4% following Musk's comments that Tesla plans to adopt Intel's next-generation manufacturing process for its in-house AI chips.

"Intel is excited to partner with us on some of the core manufacturing technologies, so we plan to use Intel’s 14A process, which is state of the art," Musk said, referring to Intel's most advanced node expected to launch in 2027. 

He added that while the process is still under development, it should be "fairly mature or ready for prime time" by the time Tesla's Terafab scales.

Meanwhile, Tesla shares reversed earlier gains, falling about 1.5% during the call after Musk reiterated that capex would exceed $25 billion this year, up from a prior forecast of more than $20 billion.

TSLA Price Action: Tesla stock was up 0.28% during regular trading and down 0.81% at $384.39 in after-hours trading on Wednesday, according to Benzinga Pro data.

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