Tesla doubles down on robotaxis

Tesla is spending more, not less, to speed up its robotaxi rollout — and the company now says capital spending will top $25 billion in 2026. (tesla.com) Tesla reported first-quarter revenue of $22.39 billion, adjusted earnings of 41 cents a share and free cash flow of $1.4 billion for the quarter ended March 31, 2026. Chief financial officer Vaibhav Taneja said on the April 22 earnings call that 2026 capital spending would be “over $25 billion,” up from a $20 billion forecast three months earlier. (cnbc.com) In its shareholder update, Tesla said it had added AI computing capacity, prepared production lines for Cybercab and Tesla Semi, and kept pushing Optimus ahead of mass production. Elon Musk said the higher spending was aimed at “substantially increased future revenue” from artificial intelligence, chip design and manufacturing. (tesla.com, finance.yahoo.com) A robotaxi is a ride-hailing car that drives itself, so the business only works if the software can handle city streets reliably enough to carry paying passengers at scale. Tesla said paid robotaxi miles nearly doubled in the first quarter and said it launched unsupervised rides in Dallas and Houston in April, after starting in Austin. (tesla.com, reuters.com) That push comes as Tesla’s core car business remains under pressure. The company said on April 2 that it delivered 358,023 vehicles in the first quarter, down from production of 408,386 vehicles, and Reuters reported that weaker demand was a central concern even as investors focused on autonomy and robotics. (tesla.com, usnews.com) Investors are valuing Tesla less like a conventional carmaker and more like a bet on self-driving software, robots and custom chips. Reuters reported that the stock’s valuation now depends heavily on whether Tesla can turn robotaxis from a limited rollout into a broad commercial service on schedule. (usnews.com) Tesla is also trying to catch up in a market where Alphabet’s Waymo already has a larger commercial footprint. Waymo said in May 2025 that Waymo One was providing more than 250,000 paid trips a week across Phoenix, San Francisco, Los Angeles and Austin, and industry reports said that figure reached 500,000 weekly rides in March 2026. (waymo.com, techcrunch.com) Tesla’s answer is to spend through the slowdown. The company’s April 22 update says the near-term bill covers factories, battery materials, AI infrastructure and vehicle programs, with robotaxis at the center of the pitch. (tesla.com) The next test is not whether Tesla can talk about autonomy, but whether it can keep adding cities, miles and paying riders fast enough to justify a $25 billion year. (tesla.com, usnews.com)