Elon Musk's Tesla posts cash burn as capex surges on AI, robotaxi push

Tesla reported its first negative free cash flow in more than two years as it stepped up spending on AI infrastructure, battery capacity, robotaxis and next-generation manufacturing. Free cash flow was negative $1.1 billion, but this was better than the $3.3 billion cash burn expected by analysts. Quarterly revenue beat estimates at $28.24 billion versus $25.71 billion expected, while adjusted EPS missed at 33 cents versus 51 cents. Shares fell about 3% after hours and are down more than 15% year to date. The report reinforces investor focus on whether Tesla’s autonomy and robotics investments can eventually offset pressure in its core auto business. Deliveries of 480,126 vehicles topped estimates, but profit pressure and heavy capex could keep sentiment mixed in the near term despite stronger-than-expected sales.