Home » Tesla will spend more to increase production at two new factories.

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


Tesla said on Monday that it was increasing spending by about $1 billion to ramp up its factories, develop new batteries and finance other projects.

In a securities filing, Tesla said it expected 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 one of several new disclosures in Tesla’s quarterly report filed with the Securities and Exchange Commission. The automaker also said that it was under increased scrutiny from the commission, and that it lost $170 million on its investment in Bitcoin.

Mr. Musk has complained recently of start-up problems at new factories near Berlin and Austin, Texas, describing them as “money furnaces” that were draining resources without producing enough cars.

Amid what Mr. Musk described as “supply chain hell,” Tesla’s profit and deliveries declined in the second quarter compared with the first three months of the year, an unusual setback for a company that dominates the fast-growing market for electric cars. The increase in capital spending suggests that getting the new factories going in Germany and Texas has proved more expensive than expected.

In the quarterly report, Tesla also disclosed that it had received a subpoena from the S.E.C. seeking information about the company’s compliance with a 2018 agreement to settle accusations of securities fraud.

The subpoena is a twist in a long-running dispute between Mr. Musk and the S.E.C. In 2018, he was accused of misleading investors by saying, on Twitter, that he had financing in place to buy the company back from shareholders. The transaction never took place.

To settle the accusations of securities fraud, Mr. Musk agreed to run certain social media posts by a company lawyer. In April, a federal judge in New York rejected an attempt by Mr. Musk to get out of the agreement.

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

Mr. Musk said last week that he still believed in cryptocurrencies and that the decision to sell some “should not be taken as some verdict on Bitcoin.” Tesla wanted the cash, he said.

The filing was made public around the same time Mr. Musk was defending his personal conduct on Twitter. The Wall Street Journal reported that the chief executive had an affair with the wife of a Google co-founder, Sergey Brin, which had ruined the two men’s friendship. Mr. Musk said the story was wrong, adding that he works so much that “there just isn’t much time for shenanigans.”



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