The Financial Post reports in its Friday edition that Tesla will spend over $20-billion (U.S.) on a dramatic reshuffling of factory lines reflecting Elon Musk's repositioning of the carmaker coming off a multiyear sales slump. A Bloomberg dispatch to the Post says capital expenditures planned for 2026 -- more than double last year's outlay -- will go to increasing production of cars, batteries and robots across half-a-dozen plants. To make room for new Optimus humanoids, Tesla will discontinue its two oldest vehicles, the Model S sedan and Model X SUV. "We're making very, very big investments," Mr. Musk said on a call after Tesla released better-than-expected quarterly results. Tesla also announced a surprise agreement to invest about $2-billion (U.S.) into Mr. Musk's money-losing artificial intelligence start-up, XAI, and signalled it is likely to build a semiconductor factory. The moves underscore Tesla's ambitions to reorient around AI, driverless technology and robots at the expense of its car business, which faces more challenges in 2026 after consecutive annual sales declines. Zacks analyst Andrew Rocco said, "It looks like they're almost ready to tear off the Bandaid on the EV business and go full in on autonomy."
© 2026 Canjex Publishing Ltd. All rights reserved.