AI, Robotaxis, and Robotics: Why Elon Musk and Tesla Are Set to Join "Magnificent Seven" Peers on a Massive Spending Spree

Death, taxes, and exertion companies spending immense amounts connected superior expenditures (capex). In 2026, these are certainties.

Alphabet conscionable announced plans to put $175 cardinal to $185 cardinal this year. This is different motion of the booming artificial quality (AI) craze taking implicit the economy.

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Tesla (NASDAQ: TSLA), which doesn't person the fiscal firepower that its "Magnificent Seven" peers do, is connected the way of a monolithic spending spree related to AI, robotaxis, and robotics. Investors request to ticker closely.

Tesla's capex totaled $8.5 cardinal successful 2025. That fig is acceptable to transcend $20 cardinal this year. It would not beryllium astonishing astatine each to spot different important leap successful 2027.

The concern is investing successful cardinal projects that are indispensable to its semipermanent success. This includes six factories.

"On apical of it, we volition besides beryllium spending wealth for gathering our AI compute infrastructure and volition proceed investing successful our existing factories to physique much capacity," CFO Vaibhav Taneja said connected the Q4 2025 net call. "And then, you know, besides the related infrastructure on with it."

Expanding robotaxi and Optimus fleets is besides a focus. And fixed that Tesla besides wants to guarantee determination are nary proviso constraints, it aims to physique a TeraFab to manufacture chips internally. This isn't portion of 2026's spending plans.

"I deliberation we're getting into this concern signifier due to the fact that we person large aspirations," Taneja mentioned.

It's wide publicized conscionable however overmuch Tesla's halfway concern is struggling, with car income dropping 11% successful Q4 2025 (ended Dec. 31). This led wide operating income to autumn 11%.

As the institution looks to money its future, investors indispensable deliberation astir wherever the wealth volition travel from. Tesla is successful a bully position. It generated affirmative escaped currency travel of $6.2 cardinal successful 2025. And it presently has $44 cardinal successful cash, currency equivalents, and investments connected the equilibrium sheet. Assuming the concern doesn't commencement posting nett losses, it has immoderate runway to enactment with.

Management has different resources arsenic good to bolster its liquidity position. It has started to speech to banks astir backing needs, truthful determination could beryllium indebtedness that's taken on.

It helps that Tesla has a monster $1.2 trillion marketplace headdress and a banal that's trading astatine a price-to-earnings ratio of 365. The precocious valuation gives it the enactment to rise equity superior with minimal dilution if needed.