Tesla's $25bn AI spending spree

Tesla is significantly ramping up its capital expenditure to fund its ambitious pivot toward AI and robotics.

The $25 billion spending plan includes the development of the 'Terafab' chip complex in Austin, which will utilize Intel's upcoming 14A manufacturing process.

Elon Musk told investors that while the company's core automotive business faces pressure, these investments are essential for future revenue growth.

However, Wall Street remains cautious, as the company's free cash flow and margins are being tested by the high costs of these unproven technologies.