Image: Tesla
Tesla increases capex to ramp up the production of batteries and Semi trucks. The company expects its ability to be self-financed will continue as long as macroeconomic factors support the current trends in its sales.
Tesla announced Tuesday in a 10-K filing that it will increase its capital expenditure next year. This is mainly due to the fact that the company continues to increase the production of 4680 batteries and aims to reach a large volume in 2024. In addition, Tesla is ramping up the production of Semi trucks, the first deliveries of which were started in late 2022. The company announced an investment in Giga Nevada, which it will expand to include two additional facilities.
“[...]we are likely to see heightened levels of capital expenditures during certain periods depending on the specific pace of our capital-intensive projects and rising material prices and increasing supply chain and labor expenses resulting from changes in global trade conditions and labor availability associated with the COVID-19 pandemic. Overall, we expect our ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales.”
Tesla expects capital expenditures to be between $7 billion and $9 billion in 2024 and 2025, up $1 billion from the $6 billion to $8 billion range envisaged for 2023. Of these, $3.6 billion will go to the Giga Nevada expansion. In addition, funds are needed to ramp up production at Giga Berlin and Giga Texas.
“Our capital expenditures are typically difficult to project beyond the short-term given the number and breadth of our core projects at any given time, and may further be impacted by uncertainties in future global market conditions.”
© 2023, Eva Fox | Tesmanian. All rights reserved.
_____________________________
We appreciate your readership! Please share your thoughts in the comment section below.
Article edited by @SmokeyShorts; follow him on Twitter
About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
