Tesla expects bigger spending bill in 2024, hopes to increase production

Tesla expects to increase its expenditure next year, allocating more funds for its efforts to improve the production capabilities of its factories.

For 2023, the automaker forecast a spending bill between $6 billion and $8 billion. In 2024, however, the brand expects the total to arrive between $7 billion and $9 billion. The company’s total for 2022 arrived at $7.16 billion.

Part of Tesla’s new spending will go towards the $3.6 billion upgrades it is making to the Nevada Gigafactory, which is expanding its production repertoire to include a new line of batteries and the company’s long-awaited electric semi truck. The latter is especially important for the automaker to break into the fleet market, whose customers are eager to break free from high fuel and maintenance costs.

Last year was one of the worst in the automaker’s relatively short history. Tesla’s market share and stock value plunged in 2022 as more automakers joined the EV race and investors reacted negatively to behaviors displayed by CEO Elon Musk. Ongoing investigations from the National Highway Traffic Safety Administration and lawsuits from shareholders promise to keep the brand entrenched in the court system. While the company is certainly capable of funding its predicted expenditure, regardless of the final amount, if these issues persist into 2023 they threaten to make the next two years just as challenging.

For now, however, it seems Tesla will remain the dominant EV player in the U.S. In January, Tesla announced price cuts across its lineup. In the short time since, other automakers have frantically adjusted their own EV price tags to stay competitive. So far it is unclear if their efforts have further loosened the brand’s grip on the EV market.

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