Tesla’s capital expenditures will more than double in 2026, focusing on factories, AI infrastructure, and driverless cars. Alphabet plans to invest $175-185 billion this year in AI. Tesla’s capex reached $8.5 billion in 2025 and may exceed $20 billion in 2026. The company generated $6.2 billion in free cash flow in 2025 with $44 billion in reserves. Management is exploring additional funding options, including debt and equity capital. Tesla’s $1.2 trillion market cap allows for potential equity raises.

Tesla is investing in key projects for long-term success, including six factories and AI infrastructure. The company plans to expand robotaxi and robotics fleets while ensuring no supply constraints. Tesla aims to build a TeraFab for internal chip manufacturing. Despite struggles in auto sales, Tesla generated positive free cash flow and has strong liquidity. Management is considering debt financing to support future investments.

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Overall, Tesla’s significant increase in capital expenditures in 2026 reflects the company’s focus on AI, robotics, and driverless cars. With strong liquidity and potential funding options, Tesla is poised for future growth and innovation. Joining Stock Advisor offers the chance to access potentially lucrative investment opportunities.

Read more at Nasdaq: AI, Robotaxis, and Robotics: Why Elon Musk and Tesla Are Set to Join “Magnificent Seven” Peers on a Massive Spending Spree