Tesla's $25B AI and robotics pivot

Musk stated that the increased spending is 'well justified' to build significant future revenue streams beyond traditional car sales.

The company plans to utilize Intel's latest chipmaking technology for its ambitious Austin-based 'Terafab' AI complex.

However, the aggressive spending plan has raised concerns among investors about negative free cash flow for the remainder of the year.

Tesla is also working to upgrade older vehicles to enable full self-driving capabilities through new 'mini-factories.'