Tesla Expects Capital Expenditures To Exceed $10 Billion In FY24

(RTTNews) - EV giant Tesla Inc. (TSLA) Monday announced that it is expecting capital expenditure to exceed $10 billion in 2024 and to range from $8 billion to $10 billion for each of the following two fiscal years.

"Our capital expenditures are typically difficult to project beyond the short-term given the number and breadth of our core projects at any given time and may further be impacted by uncertainties in future global market conditions. We are simultaneously ramping new products, building or ramping manufacturing facilities on three continents, piloting the development and manufacture of new battery cell technologies, expanding our Supercharger network and investing in autonomy and other artificial intelligence-enabled training and products, and the pace of our capital spend may vary depending on overall priority among projects, the pace at which we meet milestones, production adjustments to and among our various products, increased capital efficiencies and the addition of new projects," the company said in an SEC filing.

The company expects to meet its capex needs from cash flow from operations, which is supported by sales growth.

The company ended 2023 with $29.09 billion in cash and cash equivalents and investments, representing an increase of $6.91 billion from the end of 2022. Cash flows provided by operating activities in 2023 and 2022 were $13.26 billion and $14.72 billion, respectively, representing a decrease of $1.47 billion. Capital expenditures amounted to $8.90 billion in 2023, compared to $7.16 billion in 2022, representing an increase of $1.74 billion.