Massive AI Infrastructure Spending & Capex Surge

Tesla plans $25B in total spending for AI infrastructure, data centers, and new production lines. This includes a shift to utility-scale solar to power AI operations. Optimus production is far behind targets (few hundred units vs 5,000), with negative cash flow and competition from Figure AI. Investors are skeptical of the ROI, mirroring broader market concerns about AI capex. The spending surge is a key driver of negative free cash flow and margin pressure.