Tesla’s cash burn will test investor faith in its AI bets
Tesla reports its second-quarter results on Wednesday, and the question hanging over the call is less whether it can still sell cars than how long it can keep spending faster than it earns.
The company has just posted its best delivery quarter on record, yet Wall Street expects it to burn through roughly $3.25bn in free cash flow, a gap that measures the distance between Elon Musk’s autonomy promises and the cost of funding them.
Much of that cost is already committed. Tesla has lifted its 2026 capital budget to more than $25bn, up from around $20bn three months earlier, with close to $20bn of it earmarked for AI, spanning Dojo compute, a data-centre buildout, the Cybercab, and the Optimus robot.
The deliveries were the quarter’s clear positive. Tesla handed over 480,126 vehicles, up about 25% on a year earlier and well ahead of the roughly 406,000 analysts had...
Copyright of this story solely belongs to thenextweb.com. To see the full text click HERE
