Tesla stated on Monday that it was growing spending by about $1 billion to ramp up its factories, develop new batteries and finance different initiatives.
In a securities submitting, Tesla stated it anticipated capital expenditures to be $6 billion to $8 billion in 2022, up from an April forecast of $5 billion to $7 billion.
The spending improve was one in all a number of new disclosures in Tesla’s quarterly report filed with the Securities and Change Fee. The automaker additionally stated that it was beneath elevated scrutiny from the fee, and that it misplaced $170 million on its funding in Bitcoin.
Mr. Musk has complained lately of start-up issues at new factories close to Berlin and Austin, Texas, describing them as “cash furnaces” that had been draining assets with out producing sufficient automobiles.
Amid what Mr. Musk described as “provide chain hell,” Tesla’s revenue and deliveries declined within the second quarter in contrast with the primary three months of the yr, an uncommon setback for a corporation that dominates the fast-growing marketplace for electrical automobiles. The rise in capital spending means that getting the brand new factories stepping into Germany and Texas has proved dearer than anticipated.
Within the quarterly report, Tesla additionally disclosed that it had obtained a subpoena from the S.E.C. in search of details about the corporate’s compliance with a 2018 settlement 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 deceptive traders by saying, on Twitter, that he had financing in place to purchase the corporate again from shareholders. The transaction by no means happened.
To settle the accusations of securities fraud, Mr. Musk agreed to run sure social media posts by an organization lawyer. In April, a federal choose in New York rejected an try by Mr. Musk to get out of the settlement.
The submitting additionally revealed that Mr. Musk’s fascination with cryptocurrencies price Tesla cash. Along with its $170 million loss, the automaker stated it earned $64 million by promoting some Bitcoin, whose worth has fluctuated wildly. Tesla stated final week that it had misplaced cash after promoting most of its holdings of Bitcoin.
Mr. Musk stated final week that he nonetheless believed in cryptocurrencies and that the choice to promote some “shouldn’t be taken as some verdict on Bitcoin.” Tesla needed the money, he stated.
The submitting was made public across the similar time Mr. Musk was defending his private conduct on Twitter. The Wall Avenue Journal reported that the chief govt had an affair with the spouse of a Google co-founder, Sergey Brin, which had ruined the 2 males’s friendship. Mr. Musk stated the story was improper, including that he works a lot that “there simply isn’t a lot time for shenanigans.”