Tesla announced on Wednesday it would hike capex spending this year to over $25 billion as it doubles down on Elon Musk's pivot to AI and robotics, marking a surge from $8.5 billion last year and above the $20 billion figure given in January. The budget, more than half of Tesla's total cash in hand, will fund six new factories, including Cybercab production lines in Texas, AI infrastructure for robotaxi push, and retrofitting a California factory to build Tesla's Optimus robot. Tesla shares fell over 3% after hours. Dan Ives of Wedbush Securities said the spending was justified by AI plans, while Morgan Stanley analysts called it "necessary" but warned of near-term financial pain from slower robotaxi rollout. Another project revealed is a $3 billion semiconductor research fab in Austin, the first stage of Tesla's Terafab chip manufacturing moonshot with SpaceX and Intel. Tesla spent only $2.5 billion of its capex budget in the first quarter, recording a surprise $1.4 billion in positive cash flow, but CFO Vaibhav Taneja said the company expects negative cash flow for the rest of the year.