Tesla Shifts Focus to Robotics, Doubling Investment
Tesla has announced a strategic pivot from electric vehicles (EVs) to robotics, repurposing its EV factories to manufacture its Optimus humanoid robots. The company is doubling its capital expenditures to $20 billion in 2025 to support this transition, with a goal of producing 1 million robots annually by the end of the year. The projected cost per robot is estimated between $20,000 and $30,000, as Tesla aims to capture a share of the $3 trillion robotics market projected by 2050.
However, Tesla’s automotive revenue fell 10% in 2025, marking its first annual sales decline, and the company reported a 47% drop in earnings per share to $1.08. Investors are advised to exercise caution as Tesla’s shares are currently trading at 386 times its trailing earnings, raising concerns about the company’s ability to fund its ambitious robotics expansion amidst declining EV sales.
