Tesla has increased its capital spending this year by $1 billion and expects total spending to be up to $8 billion. The increase in costs is due to the active increase in production on three continents.
Tesla expects capital expenditures to be between $6 billion and $8 billion in 2022 and over the next two fiscal years, a US Securities and Exchange Commission (SEC) filing showed. This reflects an increase of $1 billion, up from $5-7 billion in the previous plan. According to the statement, the company is working on new products, developing new battery cell technologies, and increasing production on the three continents where its gigafactories are located, which requires increased capital investment.
Regardless of the plan, costs may vary. The company warned that capital spending could be affected by global market uncertainty. In addition, Tesla also points to rising material and supply chain prices as well as labor costs as a likely increased cost level.
“Sustained growth has allowed our business to generally fund itself, and we will continue investing in a number of capital-intensive projects in upcoming periods,” the company stated in the SEC filing.
Tesla spent $3.5 billion in the first half of 2022, up from $2.85 billion in the same six-month period in 2021.
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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.