Tesla's $25B AI and robotics pivot

Elon Musk has announced that Tesla will pivot sharply toward becoming an AI and robotics firm, with massive investments planned for the Optimus humanoid robot and a new 'Terafab' chip facility.

The automaker's first-quarter earnings showed a 17% profit increase, though revenue fell short of Wall Street expectations as global EV demand fluctuates.

Musk admitted that older Tesla models with 'Hardware 3' will likely require upgrades to achieve full unsupervised autonomy, a significant shift from previous promises.

Shares initially rallied on the profit beat but faced pressure as investors weighed the risks of the aggressive capital expenditure strategy.