Tesla has announced that it will increase its capital expenditure by $1 billion, from the previous pledge of between $5 billion and $7 billion to between $6-8 billion.
In the 10-K filing with the SEC, Tesla said:
“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,”
The EV company continued:
“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 be between $6.00 to $8.00 billion in 2022, and each of the next two fiscal years.”
Tesla went on to explain that plans and projections around the project lineup and increase of new energy storage systems and vehicles, may be altered according to the market conditions. Tesla is currently upgrading the Texas and Berlin Gigafactories, which according to Elon Musk have been “gigantic money furnaces” during the expansion of the production capabilities.
We saw last week that Tesla reported impressive Q2 earnings, which came as a surprise for some with the recent negative press over production issues and autopilot bugs. Tesla also met revenue expectations.