Technology companies are set to spend big on capital expenditures in 2026. Alphabet plans to invest $175-$185 billion this year, fueling the artificial intelligence (AI) craze. Tesla, lacking financial firepower, is embarking on a massive spending spree on AI, robotaxis, and robotics, with capex projected to exceed $20 billion.

Tesla’s capex hit $8.5 billion in 2025, expected to surpass $20 billion this year. The company is investing in key projects, including building six factories and enhancing its AI compute infrastructure. CFO Vaibhav Taneja emphasizes the importance of these investments for Tesla’s future success.

Tesla is expanding robotaxi and Optimus fleets, aiming to avoid supply constraints by building a TeraFab to produce chips internally. Despite financial struggles, the company generated positive free cash flow of $6.2 billion in 2025 and holds $44 billion in cash and investments. Management is exploring additional funding options, possibly including debt.

With a market cap of $1.2 trillion and a high P/E ratio, Tesla has the option to raise equity capital with minimal dilution if needed. Investors can access expert stock recommendations for companies with significant growth potential by joining Stock Advisor. Past picks like Nvidia, Apple, and Netflix have delivered impressive returns, making this an opportune time to invest.

Read more at Yahoo Finance: Why Elon Musk and Tesla Are Set to Join “Magnificent Seven” Peers on a Massive Spending Spree