Tesla Eyes China FSD Approval, Plans $25B 2026 Capex for Robotaxi Expansion
TSLA•Tesla CEO Elon Musk’s discussions during President Trump’s China visit may accelerate approval of Full Self-Driving in China, unlocking a new revenue stream. The company plans to boost 2026 capital expenditures to $25 billion from under $9 billion in 2025 as it scales its robotaxi service in four U.S. cities.
1. China Full Self-Driving Approval Talks
During a state visit to China with President Donald Trump, Elon Musk highlighted efforts to secure regulatory clearance for Tesla’s Full Self-Driving system, a driver-assistance platform central to the company’s robotaxi ambitions and potential new revenue in the Chinese market.
2. Surge in Capital Expenditure Plans
Tesla projects capital spending to rise to about $25 billion in 2026, up from under $9 billion in 2025, reflecting investments in manufacturing capacity, AI hardware, and software development to support autonomous driving and increased vehicle output.
3. Robotaxi Service Expansion and Analyst Views
Tesla has already launched a robotaxi service in Austin and three other U.S. cities, while market analysts remain cautious: UBS maintains a Hold rating with a $364 target and the average analyst price target sits near $400 as investors weigh the company’s aggressive spending and regulatory progress.
