Tesla just increased its spending plan to $25B — here’s where the money is going

# Tesla Is Spending Big on AI—and It's Burning Cash in the Short Term Tesla is tripling its spending plans for next year to $25 billion, mostly on artificial intelligence and manufacturing equipment, which means the company will spend more money than it makes for the rest of 2025. This is a risky bet that Tesla's leadership believes will pay off long-term, but investors should expect the company's finances to look worse before they get better. Think of it like a restaurant closing for major renovations—no revenue during construction, but hopefully much busier (and more profitable) when it reopens.