Tesla's (NASDAQ: TSLA) capital expenditures (capex) totaled $4.73 billion in Q3, more than double the $2.25 billion it spent a year earlier. That's a substantial increase, although considerably less than the roughly $7.5 billion Wall Street anticipated. Tesla also reduced its full-year capital spending forecast from more than $25 billion to about $20 billion. But that's still more than twice the $8.53 billion it spent in 2025. So where is all that money going? Let's take a closer look. Tesla has been rapidly expanding its artificial intelligence (AI) computing infrastructure at Gigafactory outside of Austin, Texas. This is what's training the neural networks powering full self-driving, Cybercab autonomous vehicles, and Optimus humanoid robots. And it requires thousands of specialized processors, servers, networking equipment, cooling systems, and electrical infrastructure.
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