Tesla Inc. anticipates that its capital expenditure will surpass \(10 billion in 2024 and will be within the range of \)8 billion to $10 billion for the subsequent two fiscal years.
The disclosure was made by the electric-vehicle manufacturer TSLA, +2.46% in its 10-K annual report filing with the Securities and Exchange Commission, which was released on Monday.
In the filing, the company mentioned that it is currently expanding its product line, constructing or enlarging manufacturing facilities across three continents, and exploring new battery cell technologies. Additionally, it is enhancing its Supercharger network and investing in autonomy and other AI-driven training and products.
Tesla plans to fund its capital expenditure requirements through operational cash flow, which is backed by sales growth.
The company cautioned last week about a slower growth trajectory for the current year as it concentrates on its upcoming generation vehicle. This cautionary statement followed weaker-than-expected fourth-quarter earnings and a decline in gross margins from 23.8% to 17.6% compared to the previous year.
In a letter to shareholders, Tesla reiterated that the ramp-up of the Cybertruck would be more prolonged due to its manufacturing complexity. The mysterious next-generation vehicle, tentatively named the Model 2, has generated significant interest, with inquiries about its potential launch by 2025 ranking as the top query on Tesla’s investor-relations site.
Analysts expressed disappointment with Tesla’s recent earnings call led by CEO Elon Musk. Wedbush’s Daniel Ives, typically bullish on the stock, criticized the call as a “train wreck” for lacking strategic and financial insights amidst ongoing price cuts, margin fluctuations, and demand variations.
Ives also highlighted the challenges faced in Tesla’s post-result conference calls following the departure of CFO Zach Kirkhorn last year, describing them as “horror shows” and urging a return to formal guidance and clearer messaging during calls.
Tesla’s stock performance has declined by 26% year-to-date, in contrast to the S&P 500 SPX, which has gained 2.5%.
