Tesla has started production of the Cybercab, a fully autonomous vehicle featuring no steering wheel or pedals. The launch signals a strategic shift from traditional manufacturing toward an AI and robotics-focused business model.
Management increased Tesla's 2026 capital expenditure budget to over $25 billion. These funds will support the Cybercab, the Optimus humanoid robot, and specialized AI infrastructure. The company expects to launch its ride-hailing service in several new cities during the first half of the year.
Immense upfront costs are expected to pressure Tesla's free cash flow throughout 2026. The vehicle's unconventional design requires regulatory exemptions and approvals from the National Highway Traffic Safety Administration before widespread deployment.