Tesla boosts 2026 capex to $25bn as Musk doubles down on AI
Source · Technology desk
— Summary
Tesla has lifted its 2026 capital expenditure plan to $25bn — up from previous guidance of $20bn and roughly triple the $8.5bn invested in 2025 — as Elon Musk doubles down on self-driving taxis, electric "Semi" trucks, the Optimus humanoid robot and a giant new "Terafab" chip plant in Austin built jointly with SpaceX. Q1 revenue rose 16% to $22.4bn and net income climbed to $477mn from $409mn, the second-weakest quarterly profit figure in five years. Adjusted profits, stripping crypto losses and an 87% jump in stock-based pay to $803mn, were up 56% to $1.5bn.
Tesla has retired its X SUV and S luxury sedan to focus on AI products. The robotaxi is still in pilot phase across a few Texas cities and Optimus mass production has slipped to July–August. Q1 capex jumped 67% to $2.5bn but Musk flagged a "very significant increase" for the rest of the year, citing the $660bn his Big Tech peers plan to spend on chips and data centres. Shares were down 1% in after-hours trade.
Musk is also reshuffling his ecosystem: SpaceX has already absorbed xAI and the X platform and is preparing a June IPO at a $1.75tn valuation. Jefferies' Philippe Houchois warns the capex ramp could "fuel concern about funding" and revive the logic of an eventual Tesla-SpaceX merger. Source: Financial Times, 22 April 2026, Stephen Morris.
The story in one line. Musk is trading near-term Tesla margins for an AI-infrastructure bet that now costs nearly three times last year’s spend, and markets are starting to flinch.
Key numbers
$25bn 2026 capex guidance, up from $20bn previously
$8.5bn capex invested in 2025 — roughly triple that
$2.5bn Q1 capex, +67% year-on-year
$22.4bn Q1 revenue, +16%
$477mn Q1 net income (vs. $409mn in Q1 2025)
$1.5bn adjusted profit, +56% after stripping crypto losses and +87% rise in stock-based comp to $803mn
$660bn combined 2026 AI spend plan across Big Tech peers (Musk’s benchmark)
$1.75tn targeted SpaceX IPO valuation in June
–1% Tesla after-hours share move
Why it matters
Tesla is remaking itself from a car company into an AI-plus-robotics conglomerate. Retiring X SUV and S sedan, scaling Optimus, and building the Austin “Terafab” with SpaceX all require spending first and earning later. The adjusted-profit detail matters: stock-based comp of $803mn (up 87%) is a real dilution cost tied to the AI-talent war, not an accounting quirk. Jefferies’ Philippe Houchois flags that such a capex ramp “may fuel concern about funding” — which explains the recurring merger speculation with SpaceX, now valued at $1.75tn.
Takeaway
Tesla is dragging its P&L through a spending cycle that only pays off if robotaxis, Optimus and in-house chips work. The June SpaceX IPO and the Terafab are the two dates to watch — one funds Musk’s universe, the other commits it.
Source: Financial Times, 22 April 2026, Stephen Morris.