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At Tesla’s
factory in Fremont, California, the automaker plans to make robots instead of its older cars, as it gears up to spend $20 billion this year to fund what it views as a business transformation.
“Forget the Tesla you knew,” wrote analysts at Canaccord Genuity, in a note following Tesla’s fourth-quarter earnings report. “The Tesla of yesterday is gone. We believe Elon Musk has reached a definitive ‘burn the ships’ inflection point — a total commitment to a vision that leaves no room for retreat.” The analysts recommend buying the stock.
After capital expenditures dropped 24% last year to $8.6 billion, Tesla indicated on Wednesday that the figure will more than double in 2026 as the company shifts business away from electric vehicles, and further into artificial intelligence, with a focus on driverless technology, humanoid robots and, eventually, the chips that underpin these long-promised ambitions.
