Tesla trims capex to $20 billion, casting doubt on AI and robotaxi plans

Tesla cut its annual capital expenditure plan to around $20 billion from over $25 billion, raising concerns about delays in Elon Musk's AI, robotaxi and humanoid robotics ambitions. The spending reduction follows a $4.73 billion outlay in the third quarter, well below the $7.95 billion analysts expected. Tesla had raised its target earlier this year but consistently fell short of the pace needed to hit it. The cut comes as Tesla explores a potential merger with SpaceX, with heavy spending seen as crucial for developing AI, Optimus robots and autonomous driving. Musk said Optimus production may take until end of 2027 due to supply-chain and design challenges.