Tesla, Inc. Plans to Accelerate AI and Energy Investments in China
Published: 26 Feb 2026
Author: Precedence Research
Tesla is set to increase its expenditure on AI hardware and software for the energy sector in China. Senior company executive Tao reported that the Gigafactory in Shanghai will supply Megapack products to China, Europe, and the Asia-Pacific region. Already a well-known electric vehicle manufacturer, Tesla now aims to expand its focus to AI humanoid robots and global energy solutions. Capital investment in Tesla’s AI computing infrastructure, robotics, engineering, cyber-cap mass production, and energy storage is expected to surpass $20 billion in 2026.
China holds slightly over 60% of the world’s AI patents, the largest share globally, and is also a major hub for biotechnology and robotics.
Following the success of AI, deep-pocketed investors are increasingly drawn to China’s technology sector, according to a fund manager from London-based Polar Capital. He noted that the positive momentum is not limited to AI but also extends to several other sectors. The firm he works for, which oversees $20 billion in assets, recently shifted its stance on Chinese equities from “underweight” to “bullish.”
Allianz Global Investors noted that, a year ago, many investors wanted to exclude China from their portfolios. However, China is now viewed as an independent investment category that cannot be overlooked.
The chief equity strategist at Morgan Stanley stated that China’s prospects offer substantial opportunities in AI, automation, and high-end manufacturing. An analyst at UBS Securities observed that China’s domestic large AI models are rapidly iterating and narrowing the gap with their U.S. counterparts. It was further noted that China and the United States are on a similar path in AI monetization and cloud computing, with these areas already showing commercially viable segments.
Foreign investors and capital are increasingly being drawn to the Chinese market due to the country’s advanced technology, strong infrastructure, and rapid progress in the field. As a result, significant changes are being observed in China’s innovation across multiple sectors.
As global investor sentiment shifts and AI commercialization gains pace, China’s position in the innovation landscape is becoming increasingly prominent. Not just investors but also researchers and strategists are turning their focus toward China’s rapidly expanding technology ecosystem. With accelerating growth, strong innovation capabilities, and robust infrastructure, the country is reinforcing its influence across AI, automation, and advanced manufacturing, emerging as a powerful force in the next wave of global technological transformation.