By Louisa Clarence-Smith
Publication Date: 2026-01-29 14:00:00
Tesla is increasing capital spending to more than $20 billion this year as it stops production of the Model S and Model X luxury vehicles and retools factories to build humanoid robots.
The electric vehicle pioneer plans to accelerate production of Optimus robots and self-driving robotaxis. The company also wants to ensure it has better control over its supply chain amid rising geopolitical risks.
The announcements came as fourth-quarter results capped a turbulent year in which vehicle sales suffered from a buyer boycott sparked by Elon Musk’s polarizing policies, the end of tax incentives and the rise of cheaper Chinese rivals. Revenue fell 3 percent to $24.9 billion in the fourth quarter, down 3 percent to $94.8 billion for the year.
Musk, 54, Tesla’s chief executive said the company wants to “ensure that we can achieve very high volume with autonomous vehicles and human robots and that we address geopolitical risks.”
He said many companies have…
