3Q18 Capital Expenditures

[ValueAnalyst]

ValueAnalyst on Twitter

My followers get it: Tesla's Maintenance CapEx comprises only a fraction of its Total CapEx. Based on an analysis of depreciation expense on relatively new assets, and competitors' output per CapEx$, I estimate our company's Maintenance CapEx at less than $1B in 2017 and $2B in 2018.

ValueAnalyst on Twitter

Tesla's Maintenance CapEx is relatively low compared to Growth CapEx, which is why management was able to dial down planned 2018 CapEx, and dial up profitability with ease. This key point is what those who expect bankwuptcy do not get, yet. They will soon.

What do you expect Tesla's Total CapEx, including both maintenance and growth CapEx, to be in 3Q18?

1Q17: $553m
2Q17: $959m
3Q17: $1,116m
4Q17: $787m
1Q18: $656m
2Q18: TBA in Aug
3Q18: Poll question

 

[Johann Koeber]

Sure, they are saving where they can.

But buildout of Superchargers, Service Centers and so on will not come to a halt.

And the new GA lines will cost money as will the buildout of capacity in Nevada. Grohmann people are working hard.

Tesla is making efficient use of capex; but they cannot - in my opinion - and should not go too low.


So 500-600 it is.

 

[ValueAnalyst]

ValueAnalyst on Twitter

For comparison purposes:

$GM spent $8.5B in CapEx and produced 10m vehicles in 2017.

$TSLA will produce at an annualized rate of 350,000 units in 3Q18, so its *maintenance CapEx* is likely than $2B/Y, or $500M/Q.

Tesla will likely not undertake any major growth CapEx in 3Q18.

 

[FirebirdAlpha]

Reminder: Tesla's Q1 letter said they were still planning 2.35B in CapEx for the remainder of the year.

CapEx isn't something that you can just "turn off." Heavy machinery takes months to configure, produce, test, and deliver. Construction projects start months before completion - cancelling construction bares a significant penalty, as the construction company has a big opportunity cost.

You can't easily bail on CapEx. Tesla stated on the Q1 call that total 2018 CapEx would be just under 3B and the vast majority of it was for the Model 3.

 

[ValueAnalyst]

Reminder: Tesla's Q1 letter said they were still planning 2.35B in CapEx for the remainder of the year.

CapEx isn't something that you can just "turn off." Heavy machinery takes months to configure, produce, test, and deliver. Construction projects start months before completion - cancelling construction bares a significant penalty, as the construction company has a big opportunity cost.

You can't easily bail on CapEx. Tesla stated on the Q1 call that total 2018 CapEx would be just under 3B and the vast majority of it was for the Model 3.

Hmm.. I see you repeating this false narrative, even though it has been shown to you that it is incorrect, as if you are trying to spread FUD?

I see on your profile that you have the all-time record in disagree-to-posts ratio, which is also another indicator that you are spreading FUD.

Ignored.