Tesla Inc (TSLA) said Monday in its third-quarter 10-Q filing with the SEC that its capital expenditures will exceed $9 billion this year, largely due to factory upgrades.
The Austin, Texas-based electric vehicle (EV) company had forecast capex of $7 billion to $9 billion in its previous filing. The company also forecast capital expenditures of $7 billion to $9 billion for the next two fiscal years. Tesla said in the filing that “rising material prices and increases in supply chain and labour costs” were potential drivers of overall capex.
“We are simultaneously launching 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 training and products, and the pace of our capital expenditures may vary depending on overall priorities,” the company said in the filing.
Tesla delivered 435,059 vehicles in the third quarter, well below analyst expectations of 455,000. Chief executive Elon Musk had warned of a slowdown due to factory shutdowns in Texas and China. The electric car maker has been retooling its factories to prepare for production of the redesigned Model 3 sedan and Cybertruck.
Tesla’s net income for the three months to 30 September was $1.88 billion, down from $3.33 billion in the same period last year.
Profits have suffered from the price war the company launched in January.
Tesla’s management also highlighted the geopolitical risks facing the company, and Musk was cautious about the company’s planned expansion via a new factory in northern Mexico. He said construction might not start until the first half of 2024.
Shares in the electric car maker tumbled last week after Musk said higher interest rates had wiped out some of the positive effects of price cuts. Shares were up almost 1% late on Monday afternoon, but are still down 14% over the past seven days.
