Connect with us
Tesla Gigafactory Nevada battery cell production line (Photo: Super Factories) Tesla Gigafactory Nevada battery cell production line (Photo: Super Factories)

News

Tesla reveals it is spending drastically more money on R&D

Tesla Gigafactory Nevada battery cell production line (Credit: Super Factories)

Published

on

Tesla is spending drastically more money on Research and Development for its vehicles and other technologies like battery cell development, it revealed in a 10-Q filing with the SEC. However, the most expensive portion of the increase in R&D expenditures came from drastic growth in employee and labor-related expenses as Tesla’s workforce continues to grow. Still, the redesign of the Model S and X, along with the development of proprietary battery cells, also contributed to the exponential growth in money spent.

Tesla is one of the fastest-growing companies in the world. It is already the most valuable car company in existence, and as the electric automaker expands its footprint to other countries and regions, it is hiring a vast number of new people to handle any responsibility. From executives to production workers, Tesla is hiring in nearly every facet of its business, and its expenses are growing as a result.

Expenses in R&D increased $342 million, or 106% in Q1 2021 compared to Q1 2020. Tesla attributes the increase in R&D costs to a growth in the employee workforce, including anything from more people working at the company to an appreciation of the stock price.

Tesla wrote:

“R&D expenses increased $342 million, or 106%, in the three months ended March 31, 2021, as compared to the three months ended March 31, 2020. The increase was primarily due to a $147 million increase in employee and labor related expenses due to an increase in headcount and increased payroll taxes related to appreciation of our stock price.”

Advertisement

Earlier this month, we reported that Tesla’s workforce had grown considerably, according to the 10-K filing it released with the SEC. The workforce increased by 22,651 total full-time employees in 2020 compared to 2019, and the number continues to expand as Tesla opens more factories, service centers, and showroom locations globally.

Tesla’s Fremont factory workforce is growing and the automaker is preparing for it

Past the increased workforce and overall company growth, a significant amount of money was pumped into expensed materials. These expenditures contributed to the “expanding product roadmap,” which included the redesigned and refreshed Model S and Model X, along with the 4680 battery cell project that Tesla has been working on.

Tesla recorded “a $122 million increase in R&D expensed materials and outside services and a $60 million increase in stock-based compensation expense. These increases were to support our expanding product roadmap, such as the new versions of Model S and Model X and technologies including our proprietary battery cells.”

The percentage of expenses due to the increased revenue increased from 5 to 6% Year-over-Year, but the increased expenditures were offset by “an increase in total revenues from expanding sales,” Tesla said.

Advertisement

Tesla has shown it funnels plenty of money into its products and aims to improve product functionality through internal expenditures. For years, Elon Musk has stood by his strategy not to hold a budget for advertising but instead funnel that money into the product itself. “Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product,” Musk said.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Comments

News

Honda and Acura EVs to gain Tesla Supercharger access this June 2025

This provides Honda and Acura EVs access to over 20,000 Superchargers across the United States.

Published

on

Autosdeprimera, CC BY 3.0 , via Wikimedia Commons

Honda and Acura electric vehicles will soon be plugging into Tesla’s Supercharger network, with approved NACS-CCS adapters rolling out to Prologue and ZDX owners in June 2025.

This provides Honda and Acura EVs access to over 20,000 Superchargers across the United States.

Adapters Ensure Safety

Starting June 2025, Honda Prologue and Acura ZDX drivers can acquire a Honda-approved NACS-CCS DC fast-charging adapter at authorized U.S. dealerships, with pricing set closer to launch. Tested for safety and compatibility, it’s the only DC adapter that Honda recommends for its EVs at NACS stations, as noted in a press release

Ryan Harty, assistant vice president of Sustainability & Business Development at American Honda Motor Co., Inc., shared his thoughts on the matter. “Adding Tesla Supercharger network access to the charging networks already available to our EV customers means industry-leading fast-charging access for Honda and Acura EV drivers,” he said.

Tesla requires approved NACS adapters at its Superchargers, and Honda strongly recommends that Prologue and ZDX owners use approved adapters. Honda also noted that damage caused by using unapproved adapters may not be covered by cars’ limited warranties.  

Advertisement

Honda’s Big Charging Vision by 2030

Honda’s not stopping at Tesla’s network. By 2030, Prologue and ZDX owners are expected to tap roughly 100,000 DC fast-charge points across North America, blending Tesla Superchargers with IONNA’s new network, EVgo, and Electrify America. 

“By the end of this decade, we strive to provide Honda and Acura EV drivers with the most convenient and easy charging at more than 100,000 charge points nationwide, helping people choose to purchase an EV for the many benefits of driving one,” Harty stated.

Continue Reading

News

“Tesla Takedown” movement plans 500 protests in 277 stores, Superchargers

Rep. Jasmine Crockett (D-TX) stated that March 29 is her birthday, and “all I want to see happen on my birthday is for Elon to be taken down.”

Published

on

Rhododendrites, CC BY-SA 4.0 , via Wikimedia Commons

The “Tesla Takedown” group is aiming to hold its “biggest day of action” in over 277 Tesla stores, as well as Supercharger stations.

During a mass call on Wednesday, organizers, filmmakers, members of Congress, and other key individuals banded together to call for a mass demonstration against the electric vehicle maker this coming March 29, as noted in a report from The Verge.

Tesla Takedown

The Tesla Takedown movement emerged from critics’ opposition to Elon Musk’s increasingly political nature, his close relationship with U.S. President Donald Trump, and his work with the Department of Government Efficiency (DOGE), which is aimed at cutting unnecessary government spending and waste. Members of the Tesla Takedown movement have targeted the EV maker since a notable portion of Musk’s net worth is tied to his Tesla holdings.

Unfortunately, protests against the electric vehicle maker and Musk have become increasingly violent, with Tesla stores being shot up and vehicles being burned in acts of arson. Supercharger stations have also been targeted in arson attacks. Tesla owners’ vehicles have been vandalized and set on fire as well.

Amidst these attacks, Trump has noted that he considers such actions as domestic terrorism. Attorney General Pam Bondi has also noted that those behind the arson and vandalism against Teslas will be caught and persecuted.

Advertisement

LFG! #teslatakedown GLOBAL DAY OF ACTION March 29Every showroom in America500+ around the worldLet's send these techno-fascists, broligarchs and old fashioned Nazis a message loud and clear. NO WAYPlan an action or find one near you: teslatakedown.com— #TeslaTakedown (@teslatakedown.com) 2025-03-20T01:48:34.522Z

“No Conspiracy,” but Still Wishing For Musk Takedown

During the hour-long call, actor and filmmaker Alex Winter, who promoted the Tesla Takedown movement on BlueSky, stated that there is no conspiracy to take down the electric vehicle maker. “There is no conspiracy, there is no well-funded cabal. It’s just Elon Musk who has taken Tesla down,” he said.

Alice Hu, executive director of Planet Over Profit, noted that protesters are looking to hold over 500 events across the world on March 29, with 277 Tesla stores expected to see demonstrations. She also stated that protesters should feel free to demonstrate at Supercharger stations. 

“We need to show Elon that he can throw a tantrum online because his stocks are tanking. He can get Trump to put on a humiliating used car show in front of the White House. These wannabe authoritarians can try to intimidate us from exercising our First Amendment rights, but they can’t stop us from fighting back,” Hu said.

Rep. Jasmine Crockett (D-TX) called for participants to fight, though she was quick to state that protests should be nonviolent. “The things that we’re fighting for, we are fighting for our country. We’re fighting for democracy. We’re fighting for our freedoms. And when I say fighting, I’m saying that figuratively. Obviously, everything that I am promoting is nonviolent,” she said. Interestingly enough, Crockett also stated that March 29 is her birthday, and “all I want to see happen on my birthday is for Elon to be taken down.”

Advertisement
Continue Reading

Elon Musk

Elon Musk confirms two measures Tesla is taking to fight vandalism

Published

on

Credit: Tesla

Tesla CEO Elon Musk has announced two measures the company is taking to fight the vandalism that is going on at showrooms across the country as vehicles and even structures have been lit on fire, spray painted, or damaged by various means by those who oppose him or the automaker.

As attacks against Tesla owners and even the company directly continue to occur across the country, people have been wondering what the company will do to fight back. After President Trump and other members of the administration stated that attacks against the company would be treated as domestic terrorism, many thought things would cool down.

However, things have only intensified. Although several of the perpetrators have been arrested and are facing consequences, it seems the severity of the attacks has only gotten worse. Things like Molotov cocktails have been employed by protestors to show their distaste for the company.

Now, Musk is detailing several things Tesla is doing at its showrooms in hopes of ending everything that has gone on and persisted due to the resistance from those who oppose the automaker.

Musk says that Tesla is now ramping up security at its showrooms and is now using Sentry Mode on all vehicles to help catch perpetrators in the act.

We have seen security beef up in several high-profile locations, including Tesla’s Las Vegas location on Sahara Blvd., where Las Vegas Metro Police were spotted yesterday keeping things under control:

Additionally, Sentry Mode has already done a great job of catching several perpetrators in the act, like this one who was recently caught, arrested, and now faces up to 18 months in jail for keying a swastika in a Tesla:

Hopefully, these two measures can eliminate most of the issues Tesla has had at its showrooms. If not, there will likely be follow-up measures utilized by Tesla in hopes of ending this senseless vandalism.

Continue Reading

Trending