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Tesla (NASDAQ:TSLA) announced in a 10-K filing on Tuesday that the electric vehicle company will increase its capital expenditure next year as the electric-vehicle maker increases production of a new battery cell and the Semi heavy duty truck.
Tesla wrote in the filing that “[we are] likely to see heightened levels of capital expenditures during certain periods depending on the specific pace of our capital-intensive projects and rising material prices and increasing supply chain and labor expenses resulting from changes in global trade conditions and labor availability associated with the COVID-19 pandemic. Overall, we expect our ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales.”
Management at the EV company expects capital expenditure to be between $7 billion and $9 billion in 2024 and 2025. The midpoint of that forecast is $1B higher than the $6.00B to $8.00B range provided for 2023.
Some of the spending will go toward a $3.6B expansion of its Nevada Gigafactory complex. The company is also boosting output at its facilities in Germany’s Berlin and Austin, Texas, while struggling with high costs of raw materials such as lithium used in batteries.
The filing also showed that Tesla recorded an impairment loss of $204M on the bitcoin it holds, while booking a gain of $64M from converting the token into fiat currency.
Shares of TSLA are down 1.33% in pre-market trading on Tuesday.
