Tesla Inc has raised its capital expenditure forecast for 2023 to between $7 billion and $9 billion, up from its earlier projection of $6 billion to $8 billion, as it continues to aggressively increase its production capacity. The electric vehicle maker aims to take advantage of the growing demand for EVs by expanding its global output and meeting the ambitious target of selling 20 million electric vehicles by 2030, set by its CEO Elon Musk.
To achieve this goal, Tesla has been ramping up production at its factories in Austin and Berlin and is planning to open a new gigafactory in Mexico. The company has also earmarked $3.6 billion to expand its Nevada gigafactory complex, where it will mass-produce its Semi truck and build a plant for the 4680 cells that will be able to make enough batteries for 2 million light-duty vehicles annually.
Tesla is also diversifying its production locations to meet regional demands and has started producing a version of the Model Y in Shanghai to be sold in Canada. This marks the first time that the company will ship cars to North America from China, and highlights Tesla’s commitment to increasing its global presence.
While Tesla’s shares fell by 3.3% in morning trade after the announcement of the increased capital expenditure forecast, the company’s ambitious plans are expected to make it twice the size of any automaker in history, accounting for approximately 20% of the global vehicle market. As the world’s most valuable automaker, Tesla is well-positioned to take advantage of the rapidly growing EV market and the global shift towards sustainable transportation.
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