Musk said on the earnings call he expects his EV company to spend $25 billion this year, up from $20 billion prior guidance.

📉 Stock Drops After Spending Update

• Shares of Tesla TSLA slipped after the company raised its capital-expenditure forecast to $25 billion from $20 billion, signaling a heavier push into AI chips, robotics and autonomous transport infrastructure.
• The new spending plan nearly triples last year’s $8.5 billion investment and flipped an initial after-hours gain into a premarket decline. Investors do like ambition, but they prefer it with a clearer timeline to returns (especially if it’s Musk on the other end).
• Elon Musk said the jump reflects “substantially increased revenue streams” expected from future products. Translation: spend now, monetize later — a strategy markets sometimes applaud and sometimes question.

📊 Profit Jumps, Revenue Slightly Misses

• Now the numbers. Tesla reported adjusted earnings of 41 cents per share versus expectations of 36 cents, while revenue came in at $22.39 billion, just shy of the $22.64 billion forecast. Operating profit rose 136% year over year to $941 million, up from $399 million in the year-ago quarter.
• Profit surged sharply from a weak year-ago comparison, highlighting cost improvements even as vehicle demand remains uneven. In earnings season language, that’s called “margin strength with volume questions.”
• The revenue miss may look small on paper, but in mega-cap tech, even minor gaps can shift sentiment quickly when expectations are already elevated.

🤖 AI Pivot Reshapes Tesla’s Strategy

• Musk outlined major investment across self-driving Cybercabs, the Semi truck, humanoid robotics and a new chip manufacturing effort tied to Tesla’s expanding AI ambitions — effectively repositioning Tesla as an infrastructure company, not just a carmaker.
• A joint Tesla–SpaceX project called Terafab in Austin aims to produce chips for autonomous vehicles, robots and orbital data centers — the kind of roadmap that sounds futuristic because it is.
• Tesla shares are lower by about 14% this year as competition from BYD and Xiaomi intensifies. Investors now face a familiar question: is Tesla still an EV stock — or already something else entirely?