Tesla Allocates Over $25B to AI Cabs, Robots and Terafab Chip Complex
Tesla has lifted its 2026 capital expenditure forecast to over $25 billion to fund AI-powered self-driving cabs, humanoid robots and chip development at the Terafab complex with SpaceX. In Q1, Tesla generated $1.44 billion in free cash flow, full self-driving subscriptions climbed 51% to 1.28 million and services revenue jumped 42% to $3.75 billion.
1. Elevated 2026 Capital Expenditure Plan
Tesla announced it will increase 2026 capital spending to over $25 billion, directing funds toward AI-driven electric taxi services, humanoid robot initiatives and collaborative chip development at the Terafab manufacturing complex in Austin.
2. Q1 Financial Performance Highlights
In the first quarter, Tesla generated $1.44 billion in free cash flow, saw full self-driving subscriptions rise 51% to 1.28 million and services revenue climb 42% to $3.75 billion, while vehicle deliveries grew 6% year-over-year.
3. Terafab Chip Development and GPU Ambitions
SpaceX’s IPO registration reveals plans to develop in-house GPUs for AI workloads as part of the Terafab project, with Musk expecting Intel’s 14A process to support fabrication, though chip supply contracts remain unsecured and timing is uncertain.