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Tesla boosts spending forecast to $25bn as Musk doubles down on AI bet

CEO warns investors to expect ‘very significant’ spending increase on self-driving taxis, trucks, robots and chip factories

Tesla boosted its spending plans to $25bn this year as Elon Musk announced a “very significant” increase in capital expenditure on self-driving taxis, trucks, robots and a massive new chip factory to power its AI ambitions.

The new forecast came as Tesla reported first-quarter profit rose 17 per cent, rebounding from a weak quarter in 2025. The electric-car maker had previously guided to $20bn in capex in 2026.

Musk told investors that there would be a “very significant increase in capital expenditure” this year, which “will be well justified considering substantially increased revenue stream”.

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