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Tesla boosts spending forecasts in race to increase output

Published 2023-04-24, 12:10 p/m
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TSLA
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Electric vehicle giant Tesla, Inc (NASDAQ:TSLA) said in a filing on Monday that the company raised its capital expenditure forecast as the automaker ramps up output at its factories. Tesla now expects to spend between $7 billion and $9B this year, higher than its previous outlook of $6B to $8B.

The world's most valuable automaker has been raising its production aggressively, prioritizing sales growth ahead of profit in a weak economy, working towards CEO Elon Musk's goal of selling 20 million electric vehicles in 2030.

Achieving that goal will make Tesla twice the size of any automaker in history, accounting for roughly 20% of the global vehicle market.

The company is also ramping up output at its factories in Berlin and Austin and plans to open a gigafactory in Mexico as the EV manufacturer pushes to expand its global output.

Earlier reports Monday show that the company has also begun producing a version of the Model Y in Shanghai to be sold in Canada this year, the first time it will ship cars to North America from China.

Shares of TSLA are down 3.02% in mid-day trading on Monday.

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