Tesla Boosts 2026 Spending for AI, Robotics Vision

Tesla announced a significant increase in its spending plans for 2026, projecting more than USD 25 billion in capital expenditures. CEO Elon Musk stated the investment would fund artificial intelligence, robotics, and chips, describing these moves as "well justified" for future revenue streams.

Credit: TESLA

Following these remarks, investors reacted with skepticism, leading to a 2.4% drop in Tesla's stock. Earlier, shares had risen by as much as 4% after the company reported positive free cash flow in the first quarter.

Musk reiterated the company's commitment to "substantially increasing" investment in its future. He added, "You should expect to see very significant increase in capital expenditures that are I think well justified for a substantially increased future revenue stream."

Musk also noted that Tesla is not alone in its substantial capital expenditure plans among major technology companies. The automaker's focus has shifted towards developing AI-powered self-driving cabs and humanoid robots, a vision that underpins much of its market valuation.

Tesla's updated forecast of more than USD 25 billion for 2026 marks an increase from the over USD 20 billion previously projected in January. Last year, the company's capital expenses totalled USD 9 billion.

CFO Vaibhav Taneja indicated that Tesla is entering a "very big capital-investment phase" expected to last a couple of years. He anticipated the company would record negative free cash flow for the remainder of 2026.

In the first quarter, Tesla unexpectedly recorded a positive free cash flow of USD 1.44 billion. This contrasts with estimates compiled by LSEG, which predicted a cash burn of USD 1.43 billion.

First-quarter profit surpassed Wall Street targets, signaling Tesla's ability to manage costs despite a challenging global economic environment. The company's capital expenditures for the quarter were approximately 40% below analysts' average expectations.

Tesla reported revenue of USD 22.39 billion for the three-month period, falling short of analysts' average estimate of USD 22.6 billion, according to LSEG data. Investors are increasingly focusing on Musk's pursuit of self-driving technology and robotics.

They seek clear evidence of the autonomy narrative transitioning from a promise to a commercial reality. Tesla announced preparations to commence volume production of its Cybercab, a fully autonomous vehicle lacking a steering wheel or pedals, this year.

The company had indicated in January that production ramp-up would begin in the first half. Musk stated that initial Cybercab production would be slow but is expected to accelerate towards the end of this year.

Tesla also began rolling out its Model Y robotaxis in Dallas and Houston, expanding its nascent service in the United States since its Austin launch last year. Preparations are in progress to extend the robotaxi service to five additional cities across Arizona, Florida, and Nevada.

Musk anticipates the service will be available in "a dozen or so states" by the end of this year, an expansion previously planned for the first half of the year. The Dutch vehicle authority RDW notified the European Commission of its intention to seek European Union-wide approval for the Full Self-Driving software system.

The regulator made this announcement earlier this month. Tesla delivered fewer vehicles than Wall Street anticipated in the first quarter, although deliveries increased by 6.3% from a year earlier.

Analysts have reduced their estimates for annual deliveries, with some projecting a decline this year. Tesla reported "continued growth in demand" for its vehicles in markets in APAC and South America, alongside a "rebound of demand" in both EMEA and North America.

However, the core automotive business faces pressure from competitors introducing newer, often lower-priced models. The expiration of a United States electric-vehicle tax incentive has added to the strain on Tesla's automotive business.

The company is developing an all-new smaller, cheaper electric SUV, with plans to initiate production in China and potentially expand to the U.S. and Europe. This SUV project remains in its early development stages and is not expected to reach production in the near term.

Meanwhile, Tesla's energy generation and storage unit has emerged as a key positive area, supported by consistent demand for grid-scale batteries. These batteries support renewable energy and help stabilise electricity networks.

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• Tesla plans to increase 2026 capital expenditures to more than USD 25 billion to fund artificial intelligence, robotics, and chips.

• CEO Elon Musk justified the significant investment as crucial for building future revenue streams.

• The company recorded a positive free cash flow of USD 1.44 billion in the first quarter, contrary to analyst estimates.

Source: REUTERS

Translucent Fried Chicken Wings Go Viral

Food blogger Cai Nan has created a translucent fried chicken recipe, turning crispy wings into edible art. His nearly invisible fried chicken wings have gone viral online.

Credit: wing@lilac001a (YouTube)

Nan uploaded a video titled I want to make the fried chicken transparent, but the result is strange, showcasing the transparent creation. The clip details how the chicken meat, bone, and crispy outer shell are made translucent.

Nan replicated the bone using a mixture of bone marrow, collagen, and cold gel. These were placed into chicken bone-shaped moulds and allowed to set.

Next, Nan transformed the chicken meat into a watery liquid, capturing the essence of the wing's flavour without physical structure. This process involved technical equipment.

To restore muscle fibres, Nan used spherification, a molecular gastronomy technique that turns liquids into a gel-like substance. This method allowed him to retain flavour while recreating the meat's structure and new translucent look.

The glass-like meat and bone were then placed into a mould. They were left to set into a solid form resembling the original wing.

Nan also successfully recreated the fried chicken's crunchy outer shell as part of the process. The completed creation results in a fully translucent fried chicken wing.

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• Food blogger Cai Nan created translucent fried chicken wings.

• The bone was replicated using bone marrow, collagen, and cold gel.

• Chicken meat was converted to liquid, then reformed using spherification.

Source: DEXERTO

Chinese Robot Firms Pivot to Household Chores, AI Brains Key

Chinese robot companies are shifting focus from performance showcases to practical applications in everyday life. A recent demonstration by X Square Robot highlighted humanoids performing household tasks, such as slowly picking up litter and sorting flower bouquets. This event signaled a deeper industry move toward proving value in messy, unpredictable home environments.

Credit: X Square Robo

Chief Executive Wang Qian of X Square Robot stated that while the hardware is largely developed, the artificial intelligence "brain" has not yet advanced sufficiently. This gap is becoming evident as companies transition from pre-programmed demonstrations to real-world deployment of robots.

Chinese humanoid robots can complete half-marathons faster than elite athletes, but tasks simple for humans remain difficult. Tidy a cluttered room, load a dishwasher, or fold clothes pose significant challenges for these machines.

Chief Executive Wang explained that marathon robots primarily contend with a constant gravitational field. However, manipulating objects with hands requires extreme precision; a deviation of 0.1 millimetres can cause a task to fail.

Repetitive actions like running require robots to be trained on relatively simple datasets. Navigating a household, where no two tasks are identical, demands a much more sophisticated AI "brain" capable of perceiving gravity and light like humans.

X Square Robot, based in Shenzhen, states it developed such an AI model called Wall-B. Wall-B was trained on data collected from over 100 households, with exposure to "noisy" conditions like pets and clutter deemed critical for performance improvement.

The company plans to introduce Wall-B into its home-cleaning robots in late May. X Square Robot also partnered with Chinese services platform 58.com, allowing Shenzhen users to book a human cleaner alongside one of the company's home-cleaning robots. A three-hour shift costs 149 yuan ($21.90), and the machines have serviced over 50 households.

Chief Executive Wang acknowledged that initial consumer feedback described the machines as slow and clumsy. However, Wang argued that real household deployment is essential for robots to enhance their ability to perform simple tasks effectively.

Wang noted that sometimes robots may place slippers in the kitchen or pause mid-task to "think"; company employees intervene remotely during such malfunctions. Wang also highlighted the enormous potential market size once the technology matures and robots become reliable household helpers.

Wang pointed out that household labour accounts for roughly 20% of GDP, representing a potentially vast market. Founded less than three years ago, X Square Robot has raised billions of yuan from investors, including Chinese tech giants Xiaomi and Alibaba, who are heavily investing in AI.

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• Chinese robot firms are shifting focus from high-performance demonstrations to practical household chores.

• X Square Robot's Chief Executive Wang Qian noted the hardware is ready, but AI "brains" need further development for complex tasks.

• Simple household tasks, requiring precision and adaptability, remain difficult for humanoids compared to repetitive actions like running.

Source: REUTERS