Tesla CEO Elon Musk expects capital expenses to rise'substantially in the future' as he funds AI and robotic dreams. The company surprised investors with positive cash flow in the first quarter, with a capital expenses forecast of $25 billion this year, down from $9 billion in 2025. Tesla CFO Vaibhav Taneja increased the company's capex forecast to $20 billion in 2026. Despite this, Musk argued that the increased spending was justified for a significantly increased revenue stream. Despite the company’s strong performance in its core automotive business, Tesla delivered fewer vehicles than Wall Street expected, but saw a 6.3% increase from the previous year. It is also in the process of developing an all-new smaller, cheaper electric SUV, with plans to start production in China and potentially expand production to the US and Europe.