The company raised its 2026 capex outlook from over $20 billion, citing investment in Cybercab, Optimus and AI infrastructure as projections point to negative free cash flow.
Tesla said on its Q1 earnings call that it plans to spend more than $25 billion on capital expenditures in 2026, up from roughly $8.53 billion in 2025 and above the over $20 billion target it gave in January 2026. The updated outlook, which was broadly in line with a market estimate of $25.09 billion, reflects a heavier investment push into the Cybercab robotaxi program, the Optimus humanoid robot line and the AI and autonomous-driving infrastructure supporting both. Tesla’s projections indicate the higher spending will push free cash flow negative for the year, while investors remain focused on how the company funds the gap between operating cash generation and capex. Tesla also holds 11,509 BTC on its balance sheet, acquired for about $386 million to $387 million and unchanged since early 2025, but the position is described as a passive holding rather than a funding source for the investment program.