Tesla, the electric vehicle leader under the guidance of Elon Musk, has announced that it is projected to spend more than $10 billion in capital expenditures for the current fiscal year. However, the company expects this figure to decrease over the next two years.
This disclosure was made in a regulatory filing containing Tesla’s annual report. The company has set its sights on capital expenditures ranging from $8 billion to $10 billion for fiscal 2025 and fiscal 2026.
In the previous year’s report, Tesla had forecasted capital expenditures between $7 billion and $9 billion for fiscal 2024 and 2025. However, the company acknowledges that unforeseen factors, such as shifting company priorities and the initiation of new projects, could have an impact on these figures.
Despite this, Tesla remains confident in its ability to sustain its growth and expansion. The company believes it can fund itself successfully as long as macroeconomic conditions continue to support current sales trends.
Tesla anticipates that certain periods may see a surge in capital expenditures. This could be due to several factors, including labor availability, supply chain constraints, material prices, and trade conditions.