Tesla raises 2023 spending forecast as it races to ramp up output

Tesla shifts its focus to sales growth, aims to sell 20M EVs in 2030

Tesla Inc raised its capital expenditure forecast for 2023 on Monday as the automaker ramps up output at its factories to take advantage of the rising interest in electric vehicles.

The company, led by Elon Musk, said in a filing that it expects to spend between $7 billion and $9 billion this year, higher than its previous outlook of $6 billion to $8 billion.

It maintained the spending outlook for the next two years at $7 billion to $9 billion. Tesla's shares fell 3.3% in morning trade.

Tesla Model S auto electric

FILE PHOTO: A Tesla Model S electric car is charged by a Destination Charger at its dealership in Seoul, South Korea July 6, 2017. REUTERS/Kim Hong-Ji (Reuters/Kim Hong-Ji / Reuters Photos)

The world's most valuable automaker has been raising its production aggressively as it prioritizes sales growth ahead of profit in a weak economy and works towards CEO Musk's bold goal of selling 20 million electric vehicles in 2030.

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Achieving that goal will make Tesla twice the size of any automaker in history, accounting for roughly 20% of the global vehicle market.

Tesla cars are parked at the construction site of the new Tesla Gigafactory for electric cars in Gruenheide near Berlin, Germany, Friday, March 18, 2022. (AP Photo/Michael Sohn)

The company in January earmarked $3.6 billion to expand its Nevada gigafactory complex, where Tesla will mass produce its long-delayed Semi truck and build a plant for the 4680 cell that will be able to make enough batteries for 2 million light-duty vehicles annually.

Ticker Security Last Change Change %
TSLA TESLA INC. 239.20 -10.03 -4.02%

TESLA RAISES US PRICES FOR MODEL S AND X VEHICLES, REVERSING SIX CONSECUTIVE PRICE CUTS

The company is also ramping up output at its factories in Berlin and Austin, and plans to open a gigafactory in Mexico as the EV behemoth pushes to expand its global output.

tesla

German Chancellor Olaf Scholz, left, talks to Elon Musk, Tesla CEO, at the opening of the Tesla factory Berlin Brandenburg in Gruenheide, Germany, Tuesday, March 22, 2022. The first European factory in Gruenheide, designed for 500,000 vehicles per ye ((Patrick Pleul/Pool via AP) / AP Newsroom)

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Reuters reported earlier in the day that Tesla has begun producing in Shanghai a version of the Model Y to be sold in Canada this year, the first time it will ship cars to North America from China.