Tesla has reported mixed financial results for the first quarter of 2026, as CEO Elon Musk doubled down on plans to transform the company from a carmaker into a leader in artificial intelligence, robotics and self-driving vehicles.
Elon Musk is the co-founder and CEO of Tesla
The EV giant confirmed it will ramp up spending to US$ 25 billion this year, with major investment earmarked for self-driving taxis, autonomous trucks, humanoid robots and a new chip manufacturing facility to support its growing AI ambitions.
Despite stronger-than-expected figures in its latest earnings report, Tesla's performance has been uneven, with weaknesses in key areas, weighing on investor confidence. The results failed to give Tesla's stock much of a lift after a tough year.
Speaking to investors, Musk made clear that the company is entering a new phase.
He said: "We are going to be substantially increasing our investment in the future.
"You should expect to see very significant increase in capital expenditures that are, I think, well justified for a substantially increased future revenue stream."
He added that Tesla is not alone in ramping up spending, pointing to similar moves by technology firms investing heavily in AI infrastructure.
Tesla has seen slowing demand for its electric vehicles, alongside intensifying competition from Chinese manufacturers such as BYD, which are gaining ground with more affordable models.
The company has also reshaped its lineup, confirming earlier this year that it would discontinue the Tesla Model S and Tesla Model X. Meanwhile, its most recent launch, the Cybertruck, has yet to achieve the level of commercial success many had anticipated.