Tesla's Billion-Dollar Shift: Beyond Cars to Robots and AI

Tesla is set to more than double its capital spending to over $20 billion in 2023, focusing on autonomous vehicles and humanoid robots. Shifting from traditional EVs, the investment will enhance AI and production lines for robotaxis, a new semi-truck, and Optimus robots, signaling a major business model transition.

Tesla is shifting gears by increasing its capital spending to more than $20 billion this year, a record high investment with little allocated to its conventional electric vehicle business.

Instead, the company is focusing on emerging business lines such as autonomous vehicles and humanoid robots, a move showcased during a recent earnings call where CEO Elon Musk affirmed the discontinuation of production for the Model X SUV and Model S sedans.

A major portion of these investments will be directed toward developing production lines for the Cybercab, a fully autonomous vehicle, Optimus robots, and facilities for battery and lithium production.

(With inputs from agencies.)