Tesla's $20 Billion Bet: From Electric Wheels to AI-Driven Dreams

Tesla plans to significantly increase its capital spending to over $20 billion, focusing on autonomous vehicles and humanoid robots rather than traditional electric vehicles. This strategic shift aligns Tesla more with tech companies and underscores its investment in AI-driven innovation.

Tesla is set to more than double its capital expenditure to exceed $20 billion this year. This move marks a significant pivot from traditional electric vehicles to ambitious new ventures in autonomous vehicles and humanoid robotics.

CEO Elon Musk announced the end of production for the Model X SUV and Model S sedans, refocusing the company's California facilities on developing humanoid robots-the centerpiece of Tesla's future-forward vision.

The massive investment will support production lines for the Cybercab, a fully autonomous vehicle, the Tesla semi-truck, and the Optimus robots, along with battery and lithium production. Despite its reliance on traditional EV sales, Tesla's substantial market valuation reflects investor confidence in Musk's ambitious AI-backed initiatives.

(With inputs from agencies.)