Tesla faces 1st quarterly cash burn from AI robotics spending
Tesla is about to report its first quarterly cash burn in over two years, thanks to massive spending on AI and robotics.
CEO Elon Musk has pushed Tesla beyond just cars, diving into projects like robotaxis and humanoid robots.
While these moves are meant to boost Tesla's future value, investors are getting a bit uneasy as progress has been slower than hoped.
Tesla expects $25B AI infrastructure spending
This year alone, Tesla expects to spend $25 billion on AI infrastructure, including data centers, and manufacturing capacity, outstripping quarterly cash generated by Tesla's core automotive and energy operations.
Even though analysts expect Tesla to deliver 1.7 million vehicles in 2026, up 3.9% from last year, which would snap a two-year skid, second-quarter free cash flow is expected to be negative $3.3 billion.
Profit margins are also shrinking as the company juggles big ambitions with financial reality.