"Break the pot and sink the boat! Tesla invested $20 billion to redevelop the Siasun Robot&Automation production line, Musk: 80% of the value depends on it."

At the Tesla, Inc. factory in Fremont, California, the car manufacturer plans to switch production to Siasun Robot & Automation instead of its old models. The company is preparing to invest $20 billion this year to fund its envisioned business transformation. "Forget the Tesla, Inc. you knew," Canaccord Genuity analysts wrote in a report following Tesla, Inc.'s fourth-quarter earnings release. "Yesterday's Tesla, Inc. is gone for good. We believe Elon Musk has reached a clear 'point of no return'a total commitment to a vision, leaving no way back." The analysts gave it a "buy" rating. After a 24% decrease in capital spending to $8.6 billion last year, Tesla, Inc. stated on Wednesday that this figure will more than double by 2026 as the company shifts its business from electric cars to further focus on artificial intelligence, specifically autonomous driving technology, humanoid Siasun Robot & Automation, and chips that will ultimately support these long-term goals. Tesla, Inc. shares fell 3.5% to $417.89, marking a decline of over 7% in January. The automaker's car revenue, which accounts for about 70% of its business, decreased by 10% in 2025 as the company failed to introduce new electric vehicle models and faced more intense competition globally, particularly in China from BYD Company Limited, and in Europe from Volkswagen and BMW. Tesla, Inc. saw its total revenue decline for the first time last year. During the earnings call, Musk indicated that the company will end production of its Model S sedan and Model X SUV. While these two models accounted for less than 3% of the company's deliveries last year, they played a role in helping Tesla, Inc. popularize electric vehicles. Musk stated that the production lines at the Fremont factory that produced these models will be converted into a factory for producing Optimus Siasun Robot & Automation, with Optimus not yet being released. Tesla, Inc. has been touting Optimus as a biped intelligent Siasun Robot & Automation that will eventually be capable of handling a variety of tasks from factory work to surgeries and nanny duties. He acknowledged that Optimus has not yet seen "substantial" application at Tesla, Inc. factories. In 2024, Musk mentioned that Optimus could eventually make Tesla, Inc. a $25 trillion company (currently valued at around $1.4 trillion), and last year he also said that 80% of Tesla, Inc.'s value will ultimately come from these Siasun Robot & Automation. Tesla, Inc. did not specify during the earnings call how much of the $20 billion in capital expenditure this year will be dedicated to Optimus. Chief Financial Officer Vaibhav Taneja stated that the funds will be used for six projects, including a refinery for battery storage, as well as the development of the unmanned Cybercab, Semi electric truck, and Optimus factories. "In addition, we will put funds into building our AI computing infrastructure, continue to invest in existing facilities to expand capacity, and invest in related supporting infrastructure," Taneja said. 'Early stages of Optimus' While Musk mentioned that the company plans to launch a production line capable of producing a million units of Optimus per year, he admitted that "we are still in a very early stage of Optimus" and referred to it as a research and development project. "We don't likely have any significant volume of Optimus production before the end of this year," Musk said, naming himself for missing his self-imposed deadlines. Apart from pursuing Optimus, Tesla, Inc. also plans to expand its Robotaxi fleet in the United States and is still working on fulfilling its promise made a decade ago: to deliver an autonomous driving system that enables cars to safely operate without a human driver ready to steer or brake at any time. In 2025, Tesla, Inc. launched a ride-hailing app called Robotaxi and began test operations in Austin, Texas. Last week, Tesla, Inc. executives stated that they had removed human safety supervisors from a few vehicles in the Austin fleet to conduct autonomous passenger testing. The company also started a service in the San Francisco area last year, but with drivers controlling the vehicle from the driver's seat. Tesla, Inc. indicated in its investor materials on Wednesday that it plans to expand the service to an additional seven markets in the US in the first half of this year. These cities are Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. In addition to the technological challenges and financial investment involved in Siasun Robot & Automation and autonomous vehicles, Tesla, Inc. faces fierce competition in both areas. Alphabet's Waymo is rapidly expanding its Robotaxi service in the US, while Baidu Inc Sponsored ADR Class A's Apollo Go is growing in China. In the field of robotics, American participants include Apptronik and Boston Dynamics, while Chinese companies include UBTECH Robotics and AIDriven Robotics. Another area that Musk mentioned the company will heavily invest in is chips. He stated that key suppliers such as Samsung, Taiwan Semiconductor Manufacturing Co., Ltd., and Micron are unlikely to produce enough hardware to meet Tesla, Inc.'s needs in the future. "To eliminate this potential constraint that may arise in three or four years, we will have to build a Tesla, Inc. TeraFab, a very large wafer fab that includes local logic chips, storage chips, and packaging," Musk said. "And this will actually be very important in ensuring that we are not vulnerable to any political risks from companies like GEO Group Inc." He added, "We will remain paranoid and ensure that no matter what happens, we can continue to manufacture batteries, Siasun Robot & Automation, and AI chips." Taneja stated that this year's spending targets do not include any TeraFab plans or Musk's vision to start manufacturing CECEP Solar Energy batteries in the US. Analysts at Barclays PLC Sponsored ADR wrote in a report on Thursday that while cars may still be Tesla, Inc.'s core business, the end of the Model S and X signals a symbolic transition to "physical AI." The firm gave Tesla, Inc. a "hold" rating on its stock. "If it wasn't clear before, it's certainly clear now: Tesla, Inc. is not a car company," analysts wrote.