In the first quarter of the year, Tesla is planning capital expenditures exceeding $20 billion, more than doubling compared to previous years. However, a significant portion of this large budget is not directed towards the company's classic model of self-driving electric vehicles. Following the loss of its leading position in electric vehicle sales to Chinese company BYD last year, Tesla has begun shifting its investments to new and not yet fully proven areas.
Statements by CEO Elon Musk In light of this, it has become clear that Model S and Model X production will be discontinued. These vacancies are planned to be dedicated to the development of humanoid robots. Musk stated this in his announcements. Capital expenditures will increase significantly this year. He stated, "We are making significant investments for a legendary future." Musk's tweet This also confirms this transformation.
Focus: Autonomous vehicles and robots
According to Tesla CFO Vaibhav Taneja, a large portion of the company's record-breaking investments will be directed towards the fully autonomous Cybercab (without steering wheel or pedals), the long-awaited Tesla Semi trucks, the Optimus humanoid robots, and battery and lithium production facilities. Although human-controlled electric vehicles account for a large portion of the company's total revenue, their market capitalization far surpasses that of other automakers. This reflects investors' faith in Musk's promises of robotaxi and humanoid robots.
Competing with tech giants: Tesla's new goals.
Tesla's aggressive investment strategy puts it in the same league as major tech companies like Meta, Microsoft, and Alphabet, which are also increasing their budgets in artificial intelligence and data centers. Following the announcement, Tesla shares rose by approximately 2,8 percent in pre-market trading. Experts say the key factor here is the company's new business model. "The business model is changing, that's the main story." They make evaluations as follows.
Necessary and large expenses
Experts note that the total investment of $20 billion is quite high, compared to previous records of around $8,5 billion last year and $11,3 billion. Taneja emphasized that the company has over $44 billion in cash and assets and stated that increased spending is inevitable. He also indicated that different options, such as reducing financing costs or resorting to borrowing, may be on the agenda in the future.
Expenses may increase, plans are still evolving.
This year's budget is significantly higher than in previous years. Tesla will allocate a large portion of its investment budget to new technological developments and increasing production capacity. Taneja states that these investments, particularly for Optimus robots and advancements in electromechanical technology, are driven by necessity rather than entertainment expenses. Musk, meanwhile, highlights the critical need in cathode and lithium refining, saying, "For God's sake, others have to produce this too."
