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Tesla just increased its spending plan to $25B — here’s where the money is going

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Tesla CEO Elon Musk kicked off the company’s first-quarter earnings call with a monetary heads-up — or depending on the mindset of the investor, a warning. Tesla’s capital expenditures will skyrocket to $25 billion in 2026, far outpacing its previous annual spend as it races to stay ahead of the competition and transitions to an AI and robotics company, according to its first-quarter earnings report.

That figure, which covers what Tesla plans to spend on physical assets outside of its day-to-day operating expenditures, is three times higher than its annual capex budget in previous years. For comparison, Tesla’s annual capital expenditures were $8.5 billion in 2025, $11.3 billion in 2024, and $8.9 billion in 2023.

Tesla had announced in January that it expected capital expenditures to be in excess of $20 billion in 2026, already a substantial increase meant to cover its AI initiatives, including investments in compute infrastructure and data centers, and the expansion and ramp of its manufacturing and R&D production lines, among other items.

This $5 billion uptick suggests these initiatives will require more money than previously planned. But so far, its quarterly capital expenditure, which was $2.5 billion, was in line with previous quarters, the report shows.

Of course, Musk views this as a positive, a sentiment many other shareholders will likely also share since it positions Tesla as a company investing in its future, namely AI and robotics.

“With 2026 we’re going to be substantially increasing our investments in the future,” Musk said in the earnings call Wednesday. “So you should expect to see significant, a very significant increase in capital expenditures, but I think well justified for a substantially increased future revenue stream.”

Musk was quick to note that Tesla isn’t the only company raising its capital expenditure budget. Amazon, for instance, has projected $200 billion in capital expenditures in 2026, across “AI, chips, robotics, and low earth orbit satellites.” Google is slated to spend between $175 billion and $185 billion in capital expenditures in 2026, up from $91.4 billion the previous year.

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The increase in Tesla’s capital expenditures is linked to Musk’s desire and ambition to evolve the company beyond building and selling EVs, solar, and energy storage.

Some of the capex spend will go toward Tesla’s core technologies such as its battery and AI software, according to Musk. The company plans to invest in AI training, chip design, and “laying the groundwork” for increasing manufacturing production, as well as invest in its robotaxi operations and its new semiconductor research fab in Austin.

The Fremont, California, factory will likely suck up some of that capital as the company ends production of the Tesla Model S and Model X and begins building its Optimus humanoid robot at scale. The company said Wednesday it has also cleared ground outside its Austin factory for a dedicated Optimus manufacturing facility.

Tesla plans to increase its internal production of Optimus for testing and then “probably” make Optimus “useful outside of Tesla sometime next year,” he said.

Tesla is also putting money toward strengthening its supply chain “across the board,” Musk said, adding that this covers batteries, energy, and AI silicon.

All of this spending, which CFO Vaibhav Taneja said will last a couple of years, comes with a literal cost. The company — which enjoyed a brief 4% share price bump due, in part, to an unexpected $1.4 billion in free cash flow — will head into negative territory later this year, Taneja said.

Tesla shares erased their gains in after-hours trading as Musk and Taneja laid out these plans to investors. Still, Tesla is sitting on loads of cash. At the end of the first quarter, Tesla reported $44.7 billion in cash, cash equivalents, and short-term investments.

“While this may seem like a lot, and we will have the impact of negative free cash flow for the rest of the year, we believe this is the right strategy to position the company for the next era,” Taneja said.

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Osun Guber: NUJ condemns escalating political violence ahead of governorship election campaigns

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The Nigeria Union of Journalists, NUJ, Osun State Council, has condemned the rising wave of political violence ahead of the August 15, 2026 governorship election.

The union also warned that the trend poses a serious threat to peace, public safety and the democratic process.

The Council expressed concern over increasing reports of killings, intimidation and destruction of property linked to political activities, saying the situation could undermine the credibility of the election if urgent steps were not taken to curb the violence.

In a statement jointly signed by the Osun NUJ Chairman, Adeyemi Aboderin, and the Secretary, Olalekan Akindoju, the union cited a report by the Kimpact Development Initiative, KDI, which recorded 44 election-related violent incidents across the state between October 2025 and June 2026.

According to the statement, the incidents reportedly resulted in the deaths of 13 people, a development the Council described as alarming and requiring immediate intervention by all stakeholders.

“The figures should serve as a wake-up call to all stakeholders. No political ambition is worth the loss of human lives,” the statement said.

The Council called on security agencies to intensify efforts to prevent further violence by protecting lives and property, maintaining professionalism and impartiality, and ensuring that those responsible for violent acts were brought to justice regardless of their political affiliations.

It also urged political parties, governorship candidates and their supporters to conduct peaceful campaigns centred on issues affecting the people, rather than engaging in actions capable of fuelling unrest.

“The NUJ cautions political leaders against making inflammatory statements that could incite violence. They have a responsibility to restrain their supporters and place the interests of Osun State above partisan considerations.

“The Council appeals to residents, particularly young people, not to allow themselves to be used as agents of political violence or intimidation during the electioneering period,” the statement added.

It emphasised that the lives and future of the state’s youth should not be sacrificed for political interests, urging them to reject any attempt to lure them into unlawful activities.

The NUJ reaffirmed the commitment of journalists in Osun State to promoting responsible journalism, factual reporting and public enlightenment throughout the governorship election campaign.

It also called on media practitioners to uphold the ethics of the profession by avoiding sensational reports capable of escalating political tension, while encouraging balanced and accurate coverage of political activities across the state.

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Resident doctors threaten nationwide strike over OAUTHC doctors’ industrial action

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The Nigerian Association of Resident Doctors (NARD) has threatened to embark on a nationwide solidarity strike if the ongoing industrial dispute at the Obafemi Awolowo University Teaching Hospitals Complex (OAUTHC) is not resolved.

In a statement on Thursday, the health body expressed support for resident doctors who commenced an indefinite strike last week.

The association, said the industrial action by the Association of Resident Doctors, OAUTHC (ARD OAUTHC), which began on 22 June, followed months of unresolved welfare and workplace concerns that management allegedly failed to address.

NARD described the crisis as avoidable, blaming it on what it called the hospital management’s failure to respond to repeated complaints despite earlier interventions by the national body.

Previous intervention ignored

According to the association, it had written to the Federal Ministry of Health and Social Welfare on 16 March, drawing attention to the deteriorating relationship between OAUTHC management and resident doctors.

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The association said it requested a stakeholders’ meeting involving the ministry, hospital management, ARD OAUTHC and NARD to address issues including salary arrears, accommodation disputes, restrictions affecting the association’s secretariat and other administrative concerns.

It said despite subsequent follow-up efforts, including another intervention in June, the issues were not treated with the urgency required.

NARD accused the hospital management of adopting a “combative” and “dismissive” approach that deepened mistrust and eventually led to the indefinite strike.

Welfare concerns

The association said the doctors’ grievances centred on several welfare and workplace issues, including the refusal to provide comprehensive meal coverage for doctors on call, the transfer of identity card costs to employees, unresolved accommodation challenges and the non-payment of some allowances.

Other concerns include the imposition of bench fees on resident doctors from accredited private teaching hospitals undertaking clinical rotations at OAUTHC, as well as what NARD described as a pattern of intimidation and victimisation of resident doctors.

The association also alleged that the hospital management’s response during the strike ultimatum did not accurately reflect discussions held with the doctors, leading members of ARD OAUTHC to reject the response and proceed with the industrial action.

Nationwide action

NARD said the dispute was discussed during its May Ordinary General Meeting in Kano, where delegates raised concerns over the welfare of resident doctors and gave its National Officers’ Committee 21 days to engage relevant stakeholders.

The association said it was unacceptable that the matter was allowed to degenerate into an indefinite strike despite the warning.

They warned that the dispute now threatens patient care, emergency services, residency training and the overall stability of the teaching hospital.

NARD called on the Federal Ministry of Health and Social Welfare to urgently convene a high-level meeting involving all parties to resolve the dispute.

It also urged the ministry to direct the hospital management to address outstanding welfare issues, stop any form of intimidation or victimisation of resident doctors, protect members participating in lawful union activities and establish a monitored framework for implementing any agreements reached.

The association warned that if the dispute remains unresolved within a reasonable time, it would be compelled to declare a nationwide solidarity strike in support of the OAUTHC resident doctors.

Ultimatum

The latest dispute comes as NARD is already locked in a broader industrial dispute with the federal government over unresolved welfare, remuneration and training-related issues affecting resident doctors across the country.

READ ALSO: NMA warns of wider health crisis as LASUTH doctors’ strike enters second day

Earlier this month, the association declared a nationwide industrial dispute and issued the federal government a 21-day ultimatum to address demands including the release of the 2026 Medical Residency Training Fund (MRTF), payment of outstanding salary and promotion arrears, correction of allowance discrepancies, improved welfare for house officers and stronger measures to protect doctors from assaults in hospitals.

The ultimatum, which is now approaching its expiration, followed resolutions reached at the association’s Ordinary General Meeting (OGM) in Kano, where delegates also raised concerns over unresolved welfare issues at several hospitals, including OAUTHC.

At the meeting, NARD specifically warned about the alleged intimidation of resident doctors at the Ile-Ife-based teaching hospital and gave its National Officers’ Committee 21 days to engage relevant stakeholders before considering further action.


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