Tesla triples AI spending

The electric vehicle maker reported a rise in first-quarter profits, but investors remain wary of the high costs associated with Musk's technological ambitions.

Tesla is betting heavily on its 'Terafab' project and the development of proprietary AI chips using Intel's 14A manufacturing node.

Musk also pledged to provide hardware upgrades for millions of older Tesla vehicles that currently lack the memory bandwidth for full unsupervised autonomy.

This strategic shift comes as the core automotive business faces increasing competition and fluctuating demand.