Tesla boosts spending plans to as much as $8bn a year

Tesla also disclosed it recorded a $170 million impairment loss in the first half of the year related to the carrying value of its Bitcoin holdings.
Image: Qilai Shen/Bloomberg

Tesla has increased its capital expenditure plan by billions of dollars after Chief Executive Officer Elon Musk referred to the carmaker’s new factories as “gigantic money furnaces.”

The company now expects $6 billion to $8 billion of capital expenditures this year and each of the next two years, according to its latest quarterly report. Tesla had previously estimated it would spend between $5 billion and $7 billion on ramping manufacturing facilities and other items.

Musk told a Tesla owners club at the end of May that the company was struggling to boost production of Model Y sport utility vehicles at factories that opened last quarter near Berlin and in Austin, Texas. The carmaker still managed to beat estimates for second-quarter earnings, and the CEO’s optimism about emerging from supply chain challenges sent shares soaring to the highest since early May.

Tesla also disclosed it recorded a $170 million impairment loss in the first half of the year related to the carrying value of its Bitcoin holdings. It also reported a $64 million gain from selling the digital asset during the period.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: