AI, robotaxis and Cybercab push Tesla beyond core auto business

AUSTIN: Tesla is rapidly transforming from an electric vehicle manufacturer into an artificial intelligence and autonomous mobility company, even as its core auto business posted record second-quarter deliveries that eased concerns over slowing demand.

The company delivered 480,126 vehicles during the April-June quarter, comfortably beating Wall Street estimates and setting a new second-quarter record. The stronger-than-expected performance was driven largely by a rebound in European sales, raising hopes that Tesla could return to annual growth in 2026 after two consecutive years of declining deliveries.

The improved auto performance provides a key financial cushion as Chief Executive Elon Musk accelerates the company’s shift toward artificial intelligence, autonomous driving and robotics–areas increasingly viewed by investors as the foundation of Tesla’s roughly $1.6 trillion valuation.

Tesla plans to spend more than $25 billion on capital expenditure in 2026, nearly three times last year’s investment, to expand AI infrastructure, battery production, Cybercab manufacturing and its Optimus humanoid robot programme.

The company has also expanded its robotaxi operations following the launch of a limited commercial service in Austin in June. Musk has said Tesla intends to scale up the autonomous ride-hailing service rapidly through 2026.

Meanwhile, production of the Cybercab, Tesla’s purpose-built self-driving vehicle without a steering wheel or pedals, is expected to ramp up later this year. The company is also continuing to roll out its Full Self-Driving (FSD) software across Europe, with analysts expecting wider availability in the coming months to support demand.

While Tesla’s recovery in Europe was supported by higher fuel prices, government EV incentives and stronger corporate fleet electrification, analysts noted that U.S. demand remains under pressure following the removal of EV tax credits. China, however, has continued to post modest growth, helped by the refreshed Model Y despite intense competition from domestic automakers.

Tesla will report its full second-quarter financial results on July 22, with investors expected to focus less on vehicle deliveries and more on progress in AI, robotaxis and autonomous technology, which are increasingly driving the company’s long-term growth story.