Tesla Looks To Go Back In The Red On AI Spending – Jalopnik

Happy Tuesday! It’s July 21, 2026, and that is The Morning Shift — your day by day roundup of the highest automotive headlines from all over the world, in a single place. This is the place you may discover a very powerful tales which might be shaping the best way Americans drive and get round.

In this morning’s version, we’re taking a look at Tesla’s spending, and GM’s earnings estimates. We’ll additionally take a look at Honda’s plans for China, and a few new hires over at Stellantis.

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Tesla, maker of the best-selling electrical automobile on the earth, has determined that making and promoting automobiles is boring. Instead it is going to promote robots, as a result of its CEO makes enterprise selections based mostly on what he thinks is cool quite than what makes any sense to anybody ever. Anyway, Tesla is predicted to report its first quarterly loss in years because it pours cash onto the AI hearth. From Reuters:

July 21 (Reuters) – Teslais anticipated to report its first quarterly money burn in over two ​years on Wednesday, as its spending on AI and robotics soars, intensifying investor scrutiny over when these bets pays ‌off.

CEO Elon Musk has pivoted the electric-vehicle maker’s focus from manufacturing automobiles to constructing so-called bodily AI companies comparable to self-driving taxis and humanoid robots. Much of Tesla’s valuation hangs on that promise.

However, buyers are rising more and more uneasy as spending on AI infrastructure, together with knowledge facilities, and manufacturing capability is projected to climb to $25 ​billion this yr, outstripping quarterly money generated by Tesla’s core automotive and power operations.

“As capex more than doubles and free cash ​flow turns negative, investors are increasingly focused on evidence that Tesla’s spending is strengthening its physical AI moat,” ⁠Morgan Stanley analysts wrote in a word.

“Capex” there refers to capital expenditures, cash spent on bodily issues like computer systems. It is smart that Tesla goes onerous in that space, because the software program facet of Musk’s AI desires is held beneath xAI, which is owned by SpaceX. That firm additionally owns Twitter, as a result of Musk’s empire is constructed on albatrosses that he is satisfied buyers are golden geese. 

Automakers make estimates about how a lot cash they will make in a given yr, and General Motors simply raised its earnings outlook for 2026. Gas costs could also be up, but it surely appears people are nonetheless spending on huge GM SUVs and vehicles. From Reuters: 

DETROIT, July 21 (Reuters) – General ​Motors lifted its full-year earnings outlook on Tuesday for the second time after reporting a 30% improve in second-quarter ‌core revenue on the again of worthwhile SUV and truck gross sales.

The Detroit automaker mentioned it simply surpassed analysts’ revenue estimates regardless of a uneven financial backdrop as shoppers grappled with greater gasoline costs, persistent inflation and slowing job progress in the course of the quarter.

Strong revenue in its house market of North America, which can also be ​its largest, was pushed by strong pricing.
GM shares rose about 1% in premarket buying and selling.

GM’s clients proceed to spend up on dear ​pickup vehicles and huge SUVs, such because the Cadillac Escalade, regardless of greater gasoline costs. The common GM ⁠car within the U.S. bought for about $52,000 in the course of the quarter, up barely from a yr earlier.

The common new automobile transaction value within the U.S. remains to be round $50,000, so the typical GM automobile sells for extra than the typical automobile. An attention-grabbing stat from an organization that feels so blue-collar. 

The Chinese auto market has been unkind to imported manufacturers lately, with buyer choice as an alternative going in the direction of home automakers. Honda has definitely seen gross sales decline, but it surely’s not giving up hope in the marketplace but. From Automotive News:

SHANGHAI — Honda Motor Co. renewed its China three way partnership with GAC Group Co. by means of 2038, betting on a turnaround on the earth’s largest auto market regardless of collapsing gross sales pushed by its lackluster electrical car lineup.

The transfer alerts Honda’s willpower to compete in China at the same time as its EVs fail to match price-competitive Chinese rivals. Honda introduced the transfer July 20, saying it’s going to higher leverage the assets of its native accomplice.

The transfer got here after CEO Toshihiro Mibe informed a Japanese newspaper July 18 his carmaker “learned the hard way” about enterprise in China by introducing automobiles developed from a Japanese perspective into the native market.

“The future of the automotive industry will revolve around Chinese manufacturers. Their cost competitiveness has become the industry standard,” Mibe informed the Yomiuri newspaper. “The moment you avoid competing with China, it’s tantamount to losing. So, cutting ties with China, such joint ventures, would not be a wise move. We will leverage China’s strengths on a global scale.”

Honda operates in China by means of a three way partnership, as is the usual for overseas automakers within the nation. Perhaps Honda is hoping that its three way partnership can begin to take a few of that home model cachet, because it is arguably Chinese-based. 

Stellantis has had some open positions atop its most worthwhile manufacturers, and people roles have now been stuffed. Matt VanDyke, previously of Ford, now runs Ram. Branten Coté, previously of Aston Martin, will run Jeep. From Automotive News:

Stellantis has appointed two business veterans to steer Jeep and Ram as its expands the manufacturers’ lineups in a bid to regain misplaced market share.

Matt VanDyke, a former Ford Motor Co. U.S. advertising chief, began July 20 as CEO of the surging Ram truck model. He succeeds Tim Kuniskis, who stays the corporate’s head of American manufacturers.

In addition, Stellantis has picked Branden Coté, a former govt at AutoNation and Aston Martin, as Jeep CEO beginning Aug. 3.

Coté will exchange Bob Broderdorf, who shall be happening medical go away after heading the SUV model since February 2025. Broderdorf will assume a brand new management position at Stellantis when he returns, the corporate mentioned.

Good for these guys. It’s good that white males can nonetheless get jobs on this economic system. 

I’m amazed that this will get an entry on History.com, however I’m not towards it. 

We hit the magic $4 mark once more yesterday, and costs are nonetheless climbing! This is dangerous, by the best way. 

Jane Remover has three full-length albums, and I someway have 147 of them on my media server. I do not understand how I did this.