Tesla lifts spending to $25B for AI

Elon Musk is betting Tesla’s future on a massive expansion of AI and humanoid robot production, with plans to launch the 'Optimus' robot by late summer.

The aggressive spending pivot has divided Wall Street, with some investors questioning the lack of high-margin business to underpin such heavy investment.

Musk also pledged to fix hardware limitations in older Tesla models that prevent full autonomy, suggesting a 'mini-factory' upgrade path.

The announcement comes as Tesla reports record sales in China but faces a potential margin squeeze from rising global energy costs.