Tech

Tesla will spend more to increase production at two new plants.


On Monday, Tesla said it was increasing spending by about $1 billion to strengthen factories, develop new batteries and fund other projects.

In a stock filing, Tesla said it expects capital expenditures to be $6 billion to $8 billion in 2022, up from an April forecast of $5 billion to $7 billion.

The spending increase was among the new revelations in Tesla’s quarterly report filed with the Securities and Exchange Commission. The automaker also said that it is under closer scrutiny by the commission and that it has lost $170 million investing in Bitcoin.

Mr. Musk recently complained about startup problems at new factories near Berlin and Austin, Texas, describing them as “money furnaces” that are draining resources without producing enough cars.

Amid what Mr Musk described as “supply chain hell”, Tesla Profits and Deliveries fell in the second quarter from the first three months of the year, an unusual setback for a company that dominates the fast-growing electric car market. The increase in capital spending suggests that getting new plants up and running in Germany and Texas has proved more expensive than expected.

In its quarterly report, Tesla also revealed that it received a subpoena from the SEC seeking information about the company’s compliance with a 2018 settlement to settle securities fraud allegations.

The subpoena is a turning point in a long-running dispute between Mr. Musk and the SEC. In 2018, he allegedly misled investors when he said on Twitter that he had the money to buy the company from shareholders. bronze. The transaction never took place.

To settle the securities fraud allegations, Mr. Musk agreed to run several social media posts by a company attorney. In April, a federal judge in New York waste an attempt by Musk to get out of the deal.

The filing also reveals that Musk’s fascination with crypto has cost Tesla money. In addition to the $170 million loss, the automaker said it made $64 million by selling some Bitcoin, the value of which has fluctuated wildly. Tesla said last week that it had lost money after selling most of its Bitcoin holdings.

Last week, Mr. Musk said that he still believes in cryptocurrencies and decided to sell some that “shouldn’t be considered some sort of judgment on Bitcoin.” Tesla wants the money, he said.

The profile was made public at the same time Musk was defending his personal conduct on Twitter. The Wall Street Journal reported that the executive had an affair with the wife of the Google co-founder, Sergey Brin, that ruined the friendship of the two men. Mr Musk said the story was false, adding that he worked so much that he “didn’t have much time for pranks”.



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