One tech titan is spending a small fraction of the capital expenditures that its peers are investing in AI...

Not rendering correctly? View this e-mail as a web page here. Left Behind in the AI Spending Race By Joel Litman, chief investment officer, Altimetry It seems almost impossible to please AI investors lately... Last Friday, we covered their skepticism of Google parent Alphabet (GOOGL) as it pours "too much money" into AI. Alphabet's cash flows have turned negative. Shareholders weren't convinced its massive infrastructure investments would translate to stronger earnings. (They seem to be coming around now.) Alphabet is far from alone. Another Big Tech company is also struggling in the AI race, but for the opposite reason... I'm talking about Tesla (TSLA). Tesla's investment plans look modest compared with the companies competing to win the AI race. While its peers are spending hundreds of billions of dollars on AI investments, Tesla is spending a small fraction of that. And somehow, that's also a problem for investors. These are the same folks who punished Alphabet for spending too much on AI. But with Tesla CEO Elon Musk's other public company, SpaceX (SPCX), now competing with Tesla in the AI race... the spending gap is getting tough to ignore. Tesla expects to spend more than $25 billion in capital expenditures ('capex') this year... But as of July, the company had spent just $2.5 billion... or one-tenth of the full-year target. That's a striking contrast with the rest of Big Tech. Alphabet, e-commerce titan Amazon (AMZN), Facebook owner Meta Platforms (META), and software giant Microsoft (MSFT) are forecast to spend a combined $725 billion in capex this year. Their stocks have faced pressure whenever investors feared their budgets were getting too large. Meta lost more than 11% in a single session last October after raising its capex guidance, and Microsoft hit a one-year low this June as its annual spending projections ballooned. Recommended Links: August 12: Wall Street to CASH OUT – 'SELL THESE STOCKS NOW' Wall Street's most powerful players are about to CASH OUT on a specific group of stocks you likely own. That's according to Professor Joel Litman, who, over a 30-year career on Wall Street, predicted the 2008, 2020, and 2022 crashes. Right now, his proprietary data shows that the same Wall Street firms that pay for HIS research are preparing to move on a scale we have never seen before. Before tomorrow, August 12, see which stocks you should SELL immediately. Early Retiree Posts Final Message to Fellow Readers For eight years, I've torn open my personal life and my finances. I've shot videos inside my home, all to tell ONE critically important story: a powerful secret about income... freedom... and early retirement. Now, I know I've done all I can – and it's time to say "goodbye." But I'm not going out quietly... or without securing one final prize for fellow readers. See this and grab your "share" while you still can. Tesla shares faced the reverse problem. Its stock has fallen 27% year to date... the worst performance among the Magnificent Seven. Investors saw its restrained budget as a sign that product development was moving too slowly. Tesla's vision extends far beyond the electric vehicles it built its business with... The company has committed $25 billion to AI this year alone... designed its own chips... and is retooling factories for robots. It's also trying to build fleets of robotaxis and an army of Optimus robots. Each of those projects needs billions of dollars of investment before bringing in a single dime. Tesla was the only way public investors could buy into Musk's AI ambitions for years. So they had to put up with whatever he chose to do with it. The story changed when SpaceX went public in June and brought xAI under its roof. It has become a more direct home for Musk's largest AI plans. That doesn't mean investors have left Tesla for dead. As we'll cover tomorrow, despite its significant drop, the market has high expectations for this Mag 7 giant. Tesla is now competing with Musk's other company... for the story that once made it unique. That's not a recipe for a great investment. Regards, Joel Litman August 11, 2026 Tell us what you think of this content We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions. Click here to rate this e-mail A publication from You have received this e-mail as part of your subscription to Altimetry Daily Authority. If you no longer want to receive e-mails from Altimetry Daily Authority, click here. Published by Altimetry. You're receiving this e-mail at penunggangbadai.moneyblog@blogger.com. For questions about your account or to speak with customer service, call (800) 701-9346 (U.S.), 9 a.m. – 5 p.m. Eastern time or e-mail info@altimetry.com. Please note: The law prohibits us from giving personalized financial advice. © 2026 Altimetry. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Altimetry. 110 Cambridge Street, Cambridge, MA 02141. altimetry.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Altimetry does not recommend or endorse any brokers, dealers, or investment advisors. Altimetry forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Altimetry (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

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