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Tesla now expects 2023 capital spending to exceed $9 billion: filing

Credit: Tesla Asia/X

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Tesla has boosted its expected capital expenditures for the year, as shared by the company in a new filing with the Securities and Exchange Commission (SEC).

In a 10-Q filing with the SEC on Monday, Tesla said it expects its capital expenditures to exceed $9 billion in 2023 after the company was previously targeting a range of $7 billion to $9 billion for both this and next year (via MarketWatch). Tesla still expects similar capital spending levels for 2024, noting that the increase was planned and is due to positive cash generation.

“Our business has been consistently generating cash flow from operations in excess of our level of capital spend, and with better working capital management resulting in shorter days sales outstanding than days payable outstanding, our sales growth is also generally facilitating positive cash generation,” Tesla said in the filing.

Additionally, Tesla said that its management expects the “ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales.”

Tesla said the company is “likely to see heightened levels of capital expenditures during certain periods depending on the specific pace of our capital-intensive projects and other potential variables such as rising material prices and increases in supply chain and labor expenses resulting from changes in global trade conditions and labor availability.”

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Tesla Q3 Earnings tempers analysts outlook as price targets lower

The news comes after Tesla reported its third-quarter earnings last week, posting $23.35 billion in revenue and GAAP earnings of $0.53 per share. During the same quarter, the automaker delivered 435,059 vehicles and produced 430,488 units at its factories.

It also comes as Tesla is set to begin Cybertruck deliveries in November and as the automaker has begun delivering its redesigned Model 3 “Highland” in Europe. Although the refreshed Model 3 isn’t yet available in North America, many expect it to launch in the market in early 2024.

In a 10-K filing in January, Tesla initially predicted that it would spend between $6 billion and $8 billion in 2023, before raising that figure to a range of $7 billion to $9 billion for fiscal years 2024 and 2025.

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla lands new partnership with Uber as Semi takes center stage

Tesla and Uber will work together, using the company’s all-electric Semi, to make sustainable Class 8 electric trucks more affordable with three main strategies: Subsidized Pricing, Predictable Growth, and Optimization of Utilization.

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Credit: Uber

The Tesla Semi has led to a new partnership between the company and Uber, as the two are launching a program that aims to revolutionize logistics by making sustainable commercial vehicles more accessible.

Uber announced on Tuesday that it was planning to launch the Dedicated EV Fleet Accelerator Program in a new partnership with Tesla. Uber’s Freight division is mainly responsible for the new program, which it calls a “first-of-its-kind buyer’s program designed to make electric freight more affordable and accessible by addressing key adoption barriers.”

Tesla and Uber will work together, using the company’s all-electric Semi, to make sustainable Class 8 electric trucks more affordable with three main strategies: Subsidized Pricing, Predictable Growth, and Optimization of Utilization.

  • Subsidized Price: Fleets purchasing Tesla Semis through this program will receive a subsidy on the purchase price.   
  • Predictable Growth: Fleets will integrate their Tesla Semis into Uber Freight’s dedicated solutions for shippers for a pre-determined period. This creates an opportunity for carriers to forecast revenue with confidence, while shippers gain consistent access to reliable, zero-emission capacity. 
  • Optimize Utilization: Uber Freight taps into its extensive freight network to match carriers with consistent, high-quality freight from our strong shipper base—helping ensure the addition of these Tesla Semis stay fully utilized and carriers see dedicated, real, measurable returns from the start

Tesla will work directly with interested companies to iron out technical details about the Semi, as well as its cost of ownership based on the tailored needs of their business. Fleets can expect savings on the first day, Uber says, as they will avoid diesel fuel costs and reduced maintenance, a widely known advantage of EVs.

Uber announced that it had partnered with select carriers to pilot the Dedicated EV Fleet Accelerator Program prior to its launch:

“During the 2-month pilot program, the Tesla Semis showcased both reliability and efficiency for Uber Freight’s shipper network. Over 394 hours of drive time, carriers covered 12,377 miles. With an average net energy consumption of just 1.72 kWh per mile and only 60 hours of total charge time, these results highlight the operational viability of Tesla Semis on demanding freight lanes. “

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In its press release launching the program, Uber effectively highlights how the use of the Semi can impact a company’s margins and profitability through fuel savings, reduced maintenance costs, and lower total cost of ownership.

This is something that turns so many people away from gas cars and toward EVs, so it’s no surprise that Uber wanted to emphasize this point on a larger scale with a company that utilizes a fleet of vehicles.

Tesla Semi shows strong results in ArcBest’s real-world freight trial

Tesla has been experimenting with a select group of companies, as well. It partnered with PepsiCo. several years ago, in an effort to launch a pilot program for the Semi. It had excellent results, showing higher efficiency, lower costs, and an exceptional ability to handle long runs.

Drivers have had a lot of positive things to say:

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Tesla Semi earns strong reviews from veteran truckers

The Semi will enter mass production next year, but we anticipate that some companies will commit to Uber’s new platform well before then.

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Energy

Tesla recalls Powerwall 2 units in Australia

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(Credit: nathanwoodgc /Instagram)

Tesla will recall Powerwall 2 units in Australia after a handful of property owners reported fires that caused “minor property damage.” The fires were attributed to cells used by Tesla in the Powerwall 2.

Tesla Powerwall is a battery storage unit that retains energy from solar panels and is used by homeowners and businesses to maintain power in the event of an outage. It also helps alleviate the need to rely on the grid, which can help stabilize power locally.

Powerwall owners can also enroll in the Virtual Power Plant (VPP) program, which allows them to sell energy back to the grid, helping to reduce energy bills. Tesla revealed last year that over 100,000 Powerwalls were participating in the program.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

The Australia Competition and Consumer Commission said in a filing that it received several reports from owners of fires that led to minor damage. The Australian government agency did not disclose the number of units impacted by the recall.

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The issue is related to the cells, which Tesla sources from a third-party company.

Anyone whose Powerwall 2 unit is impacted by the recall will be notified through the Tesla app, the company said.

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Cybertruck

Tesla launches Cybertruck orders in a new market with a catch

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Credit: Tesla

Tesla is launching Cybertruck orders in a new market, but there’s a bit of a catch.

The Cybertruck was launched in the Middle East earlier this year, as Tesla launched the ability to place a reservation for the all-electric pickup in the United Arab Emirates. It would be the first market outside of North America that would have the ability to place an order for the Cybertruck.

Tesla confirms Cybertruck will make its way out of North America this year

Other markets where the vehicle has been widely requested, like Europe and Asia, have still not approved the vehicle to be sold to the public, mostly because of size and design restrictions.

However, in the UAE, Tesla is opening up the ability for those who placed reservations for the vehicle to finally put in their order. The Order Configurator is only available to those who have already placed a reservation; it is not yet available to the public.

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Tesla said it would open up the public online configurator across the Middle East in the coming weeks:

The UAE is not the only country that will have access to the Cybertruck, as fans in other Middle Eastern countries will also be able to place orders soon. Tesla announced back in April that Saudi Arabia and Qatar would also have Cybertruck deliveries.

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These vehicles will be built at Tesla’s Gigafactory Texas plant just outside of Austin, as Gigafactory Berlin and Gigafactory Shanghai, two factories located in the same hemisphere as the Middle East, do not have established lines for Cybertruck production.

As for the other markets, Tesla CEO Elon Musk has hinted that the company could develop a smaller Cybertruck for those markets, as he admitted that in the long term, it likely made sense to build a more compact version for regions where roads are traditionally tighter.

Elon Musk hints at smaller Tesla Cybertruck version down the road

There has been no evidence of Tesla developing this more compact version, but it could eventually happen.

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