Tesla's stock price fell to $387, down from a recent high of $410, following the company's announcement of a $25 billion investment in AI and robotics. Despite reporting a 16% year-over-year revenue increase to $22.3 billion and a 56% rise in non-GAAP net profit to $1.42 billion, investor concerns over the impact of increased spending on free cash flow have weighed on the stock. Tesla plans to allocate significant funds to its Terafab project in Texas and its robotics division, aiming to enhance its AI capabilities. CEO Elon Musk highlighted the need for Tesla to develop its own chips, citing insufficient innovation from NVIDIA and AMD. The company also plans to introduce new vehicle models, including a cybercab and a smaller, more affordable car, to bolster its market position amid growing competition.