Tesla to invest up to $12 billion in batteries and electric vehicles over the next two years
Tesla has updated its capital expenditure forecasts to confirm a plan to invest up to $12 billion in its new electric vehicle and battery factories.
Tesla has advanced its plan to increase the production capacity of electric vehicles and batteries, which marks the acceleration of the company's costs.
During a Tesla conference call following the results of the third quarter of 2020, Tesla CFO Zachary Kirkhornhas warned that the company is increasing its planned capital expenditures.
published his presentation SEC 10Q per quarter and updated its investment plan.
“In view of the foregoing, plus a number of announced projects in development and all other ongoing infrastructure growth, we currently expect our capital expenditures to be at the upper end of our $2.5k to $3.5k range in 2020. and grow to $4.5-6 billion in each of the next two fiscal years.”
This means spending up to $12 billion for a period of two years, that is, during 2021 and 2022. Tesla explained that the money will go to the deployment of new production facilities at several factories under construction and development.
“We are simultaneously ramping up new products in Model Y and Solar Roof, building manufacturing facilities on three continents, and testing the development and production of new battery cell technologies, and our capital investment rates may vary depending on the overall priority between projects. the speed at which we reach milestones, production adjustments within and between our various products, capital efficiency improvements and the addition of new projects.”
According to the portal Electrek, he still plans to remain marginally profitable.
“Despite capital-intensive projects underway or planned, our business is currently consistently generating cash flow from operations that exceeds our capex levels, and in the third quarter of 2020 we also reduced the use of our working capital credit lines. We expect our ability to be self-financing will continue as long as macroeconomic factors support current trends in our sales."
“Combined with better working capital management, resulting in fewer sales maturity days compared to maturity days, our sales growth also contributes to positive cash generation. We also optimistically bolstered our liquidity with a public offering of common shares in September 2020, with net proceeds of approximately $4.970 billion.”
Spending all the money Tesla it should be able to produce more than 2 million electric vehicles a year.
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