Tesla is drawing attention as its push into robotaxis and autonomous vehicles begins to pressure its cash flow, even as the company nears a significant milestone in its full self-driving program.
The cumulative mileage driven by vehicles equipped with Tesla's Full Self-Driving (FSD) system is approaching 10 billion miles, highlighting substantial progress in its autonomous driving technology. However, the system still requires driver supervision, and full autonomy has not yet been achieved.
At the same time, expenditures are rising. Some analysts suggest Tesla's capital expenditures this year could exceed $20 billion, with some estimates reaching as high as $25 to $30 billion, depending on the company's growth targets. Such a level of investment is likely to lead to a decline in free cash flow.
A divide among investors is becoming apparent. On one side are the long-term benefits from AI and robotaxis. On the other are the short-term pressures from high spending and the uncertain timeline for achieving full self-driving capability.
Tesla's robotaxi operations in Austin remain small in scale, and the company has not yet begun selling the service to the public. Additionally, Tesla is preparing to start production of its CyberCab.
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