Tesla just increased its capex to $25B. Here’s where the money is going.

Tesla's capital expenditures are expected to skyrocket to $25 billion in 2026, three times higher than its annual capex budget in previous years. This significant increase is meant to cover investments in AI initiatives, including compute infrastructure and data centers, and the expansion of manufacturing and R&D production lines. The company's quarterly capital expenditure was $2.5 billion, in line with previous quarters.