American electric automaker Tesla has just revealed plans to boost planned capital spending this year to at least $10 billion in a 10-K document it released yesterday, January 29.
Capital expenditure plans
It is worth noting that the Musk-led company usually releases a raise in its planned capital expenditures in the past few years. That said, the notable increase in its spending plans this year is unsurprising.
As Tesla indicated in its 10-K filing, the American EV giant looks to spend more than $10 billion in 2024. In the subsequent two years, Tesla plans to spend $8 billion to $10 billion.
“Owing and subject to the foregoing as well as the pipeline of announced projects under development, all other continuing infrastructure growth and varying levels of inflation, we currently expect our capital expenditures to exceed $10.00 billion in 2024 and be between $8.00 to $10.00 billion in each of the following two fiscal years.“
Tesla indicated in the 10-K filing
According to the company, they are having a hard time projecting their near-term capex due to “the number and breadth of our core projects at any given time, and may further be impacted by uncertainties in future global market conditions.”
Tesla revealed plans to initiate development projects, including its next-gen electric vehicles. It also aims to invest in ramping up products, battery production, Supercharger Network expansion, and AI and autonomy exploration.
“…the pace of our capital spend may vary depending on overall priority among projects, the pace at which we meet milestones, production adjustments to and among our various products, increased capital efficiencies and the addition of new projects.”
Tesla indicated in the 10-K filing
Tesla’s capital expenditure in 2023
Tesla revealed in its recent 10-K SEC filing that its capital expenditure reached a total of $8.9 billion in 2023.
It demonstrated a $1.74 billion growth from just $7.16 billion in capital spending in 2022. According to the leading American brand, the business’ consecutive growth enabled it to fund its projects.
“Capital expenditures amounted to $8.90 billion in 2023, compared to $7.16 billion in 2022, representing an increase of $1.74 billion. Sustained growth has allowed our business to generally fund itself, and we will continue investing in a number of capital-intensive projects and research and development in upcoming periods.”
Tesla indicated in the 10-K filing
Despite the 2024 capital spending projection, Tesla did not yet specify which exact projects will utilize the funds. However, it is worth noting that Tesla has been focusing on production operations and Gigafactory Texas and Berlin’s expansion. In addition, it is also augmenting its already enormous Supercharger network to support the shift to electric vehicles. It is also investing in computing power to aid its AI development push, including a recently announced $500 million Dojo computer in New York. These projects may be among the automaker’s capital-heavy category this year.
Notably, 2024 could potentially become a very challenging year for Tesla. It even warned investors of an imminent “notably slower” growth rate this year due to the development of its next-gen platform. Nonetheless, its continuous push in electric vehicle-related projects will undoubtedly establish the brand’s stronger foothold in the industry.
