Tesla is a company that strives for continuous and rapid development. It invests heavily into the construction of new factories and in the development and production of new products to meet the requirements of the time, as well as to meet its broader goals.
The company strives to continually reduce production costs and improve the availability of their vehicles. This is why Tesla recently announced plans to develop and manufacture its own battery cells, with which they seek to reduce capital and operating costs, and increase range. Through these efforts, the company also hopes to eventually release a future vehicle that is even more affordable than its current offerings.
At the moment, Tesla is simultaneously building three factories on three continents, ramping new products in Model Y and Solar Roof, and piloting the development and manufacturing of new battery cell technologies. All this requires very large capital expenditures. Although difficult to predict, Tesla provides its projection of forward expenditures (2020-2022) in the 10Q SEC filing.
According to the application, Tesla is currently expecting its capital expenditures to be at the high end of its range of $2.5 to $3.5 billion in 2020. The application also includes expectations for the next two years. The company plans to spend between $9 billion and $12 billion over the next two years (2021 and 2022).
"Owing and subject to the foregoing as well as the pipeline of announced projects under development and all other continuing infrastructure growth, we currently expect our capital expenditures to be at the high end of our range of $2.5 to $3.5 billion in 2020 and increase to $4.5 to $6.0 billion in each of the next two fiscal years."
This amount spent in such a short period is quite large, which speaks not only of the company's financial ability to cover such costs but also that Tesla plans to receive a quick and substantial return from all of its factories and products. This filing is significant, demonstrating the company's aggressive plan to quickly deploy its technologies and achieve its goal of accelerating the world's transition to sustainable energy.
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