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Elon Musk says Tesla should be spending on AI 'as fast as we can'

Tesla's capital expenditure soared 142% year-over-year to $5.8 billion in the second quarter as Musk's AI spending spree ramped up.

Elon Musk says Tesla should be spending on AI 'as fast as we can'

TL;DR

  • Elon Musk wants Tesla to spend on capital expenditure (capex) as fast as possible for AI development, even if it involves some inefficiency.
  • Tesla's capex increased by 142% year-over-year to $5.8 billion in the second quarter.
  • The company is investing in new production lines for its Cybercab robotaxi and Optimus humanoid robot.
  • Tesla recorded a negative free cash flow of $1.1 billion in Q2 and expects total capex spending to surpass $25 billion this year.
  • Tesla is also planning to build a new solar panel factory, install more AI compute, and a semiconductor fab with SpaceX.
  • Musk compared Tesla's current industrial scale-up to the fastest since World War II in America.