Tesla disclosed in a filing with the SEC today that it expects to spend more than $9 billion in capital expenditures in 2023, with capital expenditures over the next two years reaching $7 billion to $9 billion per year.
Tesla believes that its capital expenditures are difficult to forecast in the near term, taking into account the number and breadth of its core programs, and may be further impacted by uncertainty in future global market conditions.
Tesla says it’s launching new products while building or expanding production facilities on three continents, piloting the development and manufacturing of new battery technologies, expanding its network of Superchargers, and investing in Autopilot and other artificial intelligence-enabled training and products. The pace of Tesla’s capital expenditures may vary depending on the overall priority of the project, the speed at which milestones are achieved, production adjustments for various products, capital efficiency improvements and project additions.
Tesla also noted that its business operations have consistently generated cash flow in excess of capital expenditure levels; sales growth has also generally contributed to positive cash generation, in part due to improved working capital management. Tesla plans to continue to utilize these cash flows for additional vertical integration, expanding its product roadmap, and providing financing options to customers.
However, Tesla also noted that the level of capital expenditures could increase in certain periods, depending on the specific progress of capital-intensive projects, as well as other potential variables – such as increased supply chain and labor costs due to higher raw material prices, global terms of trade and changes in labor availability. Overall, Tesla expects its ability to self-fund will continue as long as macroeconomic factors support current sales trends.
