Tesla’s Spending Spree Is Raising Big Questions for Investors

Signs of Strain Could Be Emerging in the AI Spending Boom

Cracks in Big Tech’s artificial intelligence-fueled spending binge could be forming across stocks and bonds. Wall Street was displeased last week when Alphabet and Tesla Motors raised their forecasts for capital expenditure—known as capex—for the rest of the year. While market watchers await spending updates from other AI hyperscalers as they release their latest earnings reports over the coming weeks, total capex in 2026 is expected to reach up…

Tesla is still a buy, this analyst says

Roth Capital Partners analyst Craig Irwin says Tesla’s (Tesla Stock Quote, Chart, News, Analysts, Financials NASDAQ:TSLA) Q2 revenue beat showed healthy demand, while spending on Optimus and Robotaxi weighed on earnings. In a July 23 update, Irwin maintained his “Buy” rating and $505.00 target on Tesla. Tesla reported Q2 revenue of US$28.2-billion and adjusted EPS […] Source

Tesla's Terafab Could Avoid $1.5T in External Chip Spending by 2050, RBC Says

RBC Capital Markets lowered its price target on Tesla on Monday while maintaining an Outperform rating on the stock, according to a new research note obtained by PriceTarget. The firm trimmed the target by about 4%, to $480 from $500. The new target implies approximately a 55.2% upside based on Monday’s closing price of $309.22. Analyst Tom Narayan cut his standalone intrinsic value for Tesla — the figure that strips out any merger premium — to …

Tesla’s Terafab Could Avoid $1.5T in External Chip Spending by 2050, RBC Says

RBC Capital Markets lowered its price target on Tesla on Monday while maintaining an Outperform rating on the stock, according to a new research note obtained by PriceTarget. The firm trimmed the target by about 4%, to $480 from $500. The new target implies approximately a 55.2% upside based on Monday’s closing price of $309.22. Analyst Tom Narayan cut his standalone intrinsic value for Tesla — the figure that strips out any merger premium — to …

Lessons from Tesla’s AI strategy

For years, the public cloud was the default for new workloads because its convenience, elasticity, and breadth of services made sense. However, as AI’s strategic importance grows, its economics and infrastructure are changing. Tesla is one of the clearest examples of a company deciding that AI is too important, too expensive, and too central to its business to leave largely in the hands of a third-party cloud provider.  At the center of Tesla’s …

Tesla’s Spending Spree Is Raising Big Questions for Investors

Tesla is spending aggressively on AI, robotics, and self-driving technology, but shrinking margins and negative free cash flow are testing investors' confidence.