Elon Musk's Tesla posts cash burn as capex surges on AI, robotaxi push

Tesla reported negative free cash flow of $1.1bn in Q2 2026 as capex surged to $5.8bn, driven by $25bn annual spending on AI, autonomous driving and robotics infrastructure. The core automotive business faces margin pressure from competition and lower pricing, whilst Wall Street scrutinises whether the capex bet on self-driving and energy storage will deliver promised high-margin revenue streams.

This Wire brief sits within Fusion42's coverage of Autonomous Vehicles and AI Infrastructure. Wire is Fusion42's founder-focused intelligence feed: each story is connected to the funds and startups it names — every one with a live profile on Raise or Scout — so founders can follow the capital and the momentum behind the headline rather than just the headline itself. Wire analysis is one of the live surfaces Arthur reasons over.