Tesla Raises Spending Plan And Reveals New Subpoena On Musk’s 2018 Tweet

Tesla raises capital expenditures by $1 billion and reveals a subpoena related to Musk’s private tweets in 2018

The electric car maker said in a regulatory statement Monday that Tesla has increased its capital spending plan by $1 billion, and also revealed a second subpoena related to 2018 CEO Elon Musk’s privatization tweets.

The company now expects to spend between $6 billion and $8 billion this year and each of the next two years, on top of its previous spending plan of $5 billion to $7 billion, as it looks to ramp up production at its new facilities in Texas and Berlin.

Musk said last month that factories were “losing billions of dollars” as they struggle to increase production due to battery shortages and port problems in China.

Meanwhile, the US Securities and Exchange Commission (SEC) recently requested a subpoena dated June 13 for information about compliance with Musk’s deal with the regulator in 2018.

Musk had settled a lawsuit against the Saudi Electricity Company over his tweets allowing the company’s lawyers to pre-approval of tweets that contain material information about the company.

The company said it would cooperate with government authorities. The Securities and Exchange Commission declined to comment. The regulator first summoned Tesla in November in connection with the deal.

The world’s richest person, who calls himself a “free speech absolute,” said in March that his “secured funding” tweet was honest, comparing himself to rapper Eminem in his attempt to undo a 2018 deal with the Securities and Exchange Commission.

In June, he also appealed to a judge in refusing to terminate the deal.

The latest subpoena comes as Musk prepares for a legal confrontation in October with Twitter to abandon his $44 billion bid to buy the social media company.

In June, the regulator questioned Musk about a tweet that raised questions about his Twitter acquisition over concerns about the number of fake users and spam accounts.

Separately, the Tesla filing said it had converted about 75% of its bitcoin holdings into fiat currency, earning $64 million in the process, while recording $170 million in impairment charges in the first six months of 2022.

It said in the filing that as of June 30, the fair market value of its digital assets was $222 million.

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