Tesla Boosts Annual Spending on AI Investment, Raising Free Cash Flow Concerns

Tesla has raised its capital expenditure (Capex) plan for this year to $25 billion (approximately 35 trillion won) from $20 billion, to enhance its AI and autonomous driving systems.

This move follows CEO Elon Musk's declared commitment to concentrated investment in building next-generation AI computing clusters and advancing the Full Self-Driving (FSD) system.

Consequently, market concerns are arising that the company's free cash flow (FCF) may decrease or turn negative.