Highlighting the change, CEO Elon Musk said Tesla would end production of its Model X SUV and Model S sedans and instead use the space in its California factory to make humanoid robots. Much of that value hangs on investors' beliefs that Musk will deliver on lofty promises of delivering robotaxis and humanoid robots backed by the company's investment in artificial intelligence. "The bigger story," he said, "is the business model transition now underway" as Tesla focuses on autonomous driving. 'NECESSARY SPENDING'Andrew Rocco, stock strategist at Zacks Investment Research, said he viewed the $20 billion as "necessary spending." The $20 billion is more than double the $8.5 billion in capital spending last year, ​and significantly above the prior record of $11.3 billion in 2024.