Tesla just increased its capex to $25B. Here’s where the money is going.

Tesla has announced a significant increase in its capital expenditure (capex) for 2026, raising it to $25 billion—three times its historical spending levels. This ambitious investment reflects the company's commitment to expanding its operations and enhancing its technological capabilities. However, Tesla's CFO has indicated that this aggressive spending will lead to a negative free cash flow for the remainder of the year. As we delve into the specifics of where this substantial funding will be allocated, the implications for Tesla's future growth become increasingly clear.