Tesla to boost robot spending as profits fall to pre-pandemic low

Tesla reported annual net income fell 46% to $3.8 billion, its lowest since the pandemic, and said it will more than double capital spending to about $20 billion to fund AI and robot projects.

Tesla reported a significant drop in annual profit and signalled a shift toward increased spending on artificial intelligence and robots. Net income fell steeply compared with the prior year. Company leaders said they will reallocate manufacturing capacity and increase capital investment to support new projects. Executives also described plans to roll out autonomous vehicle services in selected cities. Known details: - Annual net income fell 46 per cent to $3.8 billion, the lowest level since the pandemic. - Tesla said it will more than double capital expenditures to about $20 billion this year to fund AI and robotics initiatives. - The company plans to stop production of the S and X models in the second quarter and convert a Fremont, California factory to build Optimus robots. - Tesla disclosed a recent $2 billion investment in the AI firm xAI and outlined plans to introduce robotaxi services in several U.S. cities, including Houston and Miami, in the first half of the year. Summary: Tesla is shifting resources from some current vehicle lines toward AI and robotics while reporting weaker car-related profits. The company expects higher capital spending and a factory conversion in the second quarter, and it has announced planned robotaxi rollouts in the first half of the year. How these changes will affect future sales and overall performance is undetermined at this time.