Tesla said in a newly filed regulatory filing that the company will increase spending by $1 billion this year to expand factories, develop new batteries and provide Funding for other projects. In the filing, Tesla expects capital expenditures of $6 billion to $8 billion in 2022, up from a forecast of $5 billion to $7 billion in April.
The increased spending is just one of several new disclosures by Tesla in its quarterly report to the U.S. Securities and Exchange Commission (SEC). The company also said it was under increased scrutiny from the SEC and lost $170 million on its bitcoin investments.
Tesla CEO Elon Musk recently complained about startup problems at new factories in Berlin, Germany and Texas, USA, calling them “money melting pots” that are running out of resources and not producing enough cars.
In what Musk called “supply chain hell,” Tesla’s second-quarter profits and deliveries fell from the first, a sign of a company that dominates the fast-growing electric-vehicle market. Could be a huge setback. The increase in capital spending suggests that getting new plants in Berlin and Texas up and running is more expensive than expected.
In its quarterly earnings report, Tesla also disclosed that it received a second SEC subpoena for information about the company’s compliance with a 2018 agreement to settle securities fraud charges.
The subpoena is a twist in a long-running dispute between Musk and the SEC. In 2018, Musk was accused of misleading investors by tweeting that he was ready to buy the company money from shareholders. But in reality, he was not given a “funding guarantee” and the deal never happened.
To settle securities fraud charges, Musk agreed to have company lawyers review some of his social media posts ahead of time. In April, a federal judge in New York rejected Musk’s request to overturn the agreement.
The documents also show that Musk’s fascination with cryptocurrencies has cost Tesla dearly, including a $170 million loss. Musk said last week, however, that he still believes in the potential of cryptocurrencies and that the sale of some cryptocurrencies “should not be seen as some kind of verdict on Bitcoin,” except that Tesla needs cash.
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