Tesla has outlined its capital expenditure plans for 2024 and beyond in its recently released 10-K. In the document, the company anticipates spending a minimum of $10 billion this year and estimates capital expenditures ranging from $8 billion to $10 billion in both 2025 and 2026.
Tesla acknowledges the difficulty in predicting near-term capital expenditure plans due to the dynamic nature of its core projects, potential uncertainties in the global market, and ongoing developments. The company is engaged in various projects, including the development of new vehicles, scaling up production, manufacturing batteries, expanding the Supercharger Network, and increasing investments in artificial intelligence (AI) and autonomy.
The filing notes that the pace of capital spending may fluctuate based on project priorities, milestone achievements, production adjustments, capital efficiencies, and the addition of new projects.
Despite the record-high spending forecast for the year, Tesla has cautioned that its growth rate in 2024 is expected to be notably slower than that of 2023. The company is transitioning between two major growth phases, with the first marked by the global expansion of the Model 3/Y platform and the next anticipated to begin with the global expansion of the next-generation vehicle platform, particularly at Gigafactory Texas.
While 2024 may pose challenges, Tesla remains committed to its expansive spending plans and ongoing projects, aiming to navigate through the year successfully and continue its forward momentum.
------The article excerpted from TESLARATI.