Tesla is expected to report its first quarterly cash burn in over two years, as its spending on AI and robotics soars, intensifying investor scrutiny over when those bets will pay off. CEO Elon Musk has pivoted the electric-vehicle maker’s focus from manufacturing cars to building so-called physical AI businesses such as self-driving taxis and humanoid robots.
Tesla’s AI Ambitions
Much of Tesla’s valuation hangs on that promise. However, investors are growing increasingly uneasy as spending on AI infrastructure, including data centers, and manufacturing capacity is projected to climb to $25 billion this year, outstripping quarterly cash generated by Tesla’s core automotive and energy operations.
Investors have been betting that Tesla’s autonomous-driving technology and robotics ambitions could eventually unlock new, high-margin revenue streams. But progress has been slower than many analysts expected, and Musk has missed some self-imposed deadlines.
Robotaxi Service Expansion
Soon after launching its robotaxi service in Austin, Texas, in April last year, Musk predicted Tesla robotaxis would serve half the U.S. population by the end of 2025. In January, Tesla said the service would expand to seven new cities in the first half of 2026. But its robotaxi network remains confined to Austin, Dallas, Houston in Texas, and Miami in Florida.
Ahead of Wednesday’s earnings call, the most-voted question on Tesla’s investor-relations site, submitted by a retail investor, was: “What is keeping Tesla back from accomplishing these short-term goals that they’ve set for themselves?” Nine of the top 10 most-voted questions center around Tesla’s AI-driven bets – robotaxis, Optimus humanoid robots and its Full Self-Driving technology.
Auto Business Rebounds
Tesla delivered a record number of vehicles for the April-to-June period, far exceeding market estimates, as higher oil prices helped drive sales of EVs, especially in Europe. Analysts expect Tesla to deliver 1.7 million vehicles in 2026, up 3.9% from last year, which would snap a two-year skid of declining annual deliveries.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
