Tesla Plots $20 Billion Splurge to Support Musk’s AI Future (2)

Tesla Inc. will spend over $20 billion on a dramatic reshuffling of factory lines reflecting Elon Musk’s repositioning of the carmaker coming off a multiyear sales slump.

The capital expenditures planned for 2026 — more than double last year’s outlay and almost twice as much as Wall Street was expecting — will go to ramping up production of cars, batteries and robots across half a dozen plants. To make room for new Optimus humanoids, Tesla will discontinue its two oldest vehicles, the Model S sedan and Model X SUV.

“We’re making very, very big investments,” Musk said on a ...