Tesla has reported increased first-quarter revenue, driven by robust electric vehicle sales and growing Full Self-Driving (FSD) subscription revenue. The company’s latest financial results demonstrate continued momentum in the competitive EV market despite broader economic uncertainties.

The automaker also announced a significant increase in its capital expenditure plan, raising it to $25 billion. This substantial investment will fund expansion of manufacturing capabilities, charging infrastructure, and research and development initiatives. Tesla CEO Elon Musk outlined plans to deploy these funds across multiple strategic priorities.

However, Musk acknowledged that millions of existing Tesla owners will require hardware upgrades to access true “Full Self-Driving” capabilities. This admission highlights the technological evolution needed for the company’s autonomous driving ambitions and may impact customer upgrade paths.

The company’s spending increase reflects its aggressive growth strategy as it faces intensifying competition from both established automakers and emerging EV startups. Tesla’s ability to maintain market leadership while scaling production remains a key focus for investors.

Source: TechCrunch