You are using an older browser version. Please use a supported version for the best MSN experience.

Tesla Expects Capital Spending Boost Amid Growth Spurt

Bloomberg logoBloomberg 10/26/2020 Dana Hull
a car parked in a parking lot: A Tesla Inc. vehicle charges at a charging station in San Mateo, California, U.S., on Tuesday, Sept. 22, 2020. Tesla will provide a highly anticipated technology update when Elon Musk takes center stage at an event the chief executive officer has dropped hints about for months -- and which has helped propel the company's sky-high valuation. © Bloomberg A Tesla Inc. vehicle charges at a charging station in San Mateo, California, U.S., on Tuesday, Sept. 22, 2020. Tesla will provide a highly anticipated technology update when Elon Musk takes center stage at an event the chief executive officer has dropped hints about for months -- and which has helped propel the company's sky-high valuation.

(Bloomberg) -- Tesla Inc. expects capital spending on new plants and equipment to reach the high end of a range from $2.5 billion to $3.5 billion in 2020, according to a regulatory filing.

The Palo Alto, California-based maker of electric cars also projects that spending could almost double in each of the next two years, rising to a range of $4.5 billion to $6 billion, it said in the quarterly filing disclosed Monday.

Tesla currently has one auto plant in Fremont, California, and a newer factory in Shanghai, China. The company has begun construction on new vehicle-assembly facilities in Berlin and Austin, Texas, with plans to begin delivering vehicles from both locations next year.

Tesla shares have risen more than 400% this year. The stock pared a gain of as much as 1.2% to trade up 0.5% to $420.57 as of 10:27 a.m. in New York.

(Corrects to show stock price was $420.57 as of 10:27 a.m. in fourth paragraph.)

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

AdChoices
AdChoices
AdChoices
image beaconimage beaconimage beacon