Tesla to exceed $9 billion capex target this year
Tesla announced on Monday that its capital expenditure for 2023 is set to surpass its previously projected range of $7 billion to $9 billion. This decision comes as the company accelerates production across its factories and prepares to introduce new models. In the final quarter of this year, Tesla is set to roll out its upgraded Model 3 compact sedan and the highly-anticipated "Blade Runner"-inspired Cybertruck. Factory retooling in the third quarter briefly impacted deliveries and earnings.
Anticipated spending trends
Nevertheless, a recent regulatory filing has indicated that the electric car manufacturer intends to bring its capital expenditure back within the $7 billion to $9 billion range in the next two years. CEO Elon Musk recently revealed that the company is currently deliberating its plans for a new factory in Mexico. Musk expressed concern over the potential impact of rising interest rates on Tesla's demand, given that the company has engaged in a margin-sapping price war this year.
Tesla explores advertising strategies as demand challenges emerge
Tesla has initiated small-scale advertising efforts, with plans to expand as they identify the most effective strategies, according to a post by Musk on the X social media platform. This signifies a shift for Tesla, which previously relied on Musk's celebrity status and customer excitement for marketing. Shareholders, including Gary Black of The Future Fund, have advocated for advertising as price reductions have had a limited effect on demand. Tesla's shares were down 1.2% in premarket trading
