Tesla Is Investing in Rapid Growth in 2024

Image credit: Tesla

Tesla is raising its investments in rapid development in 2024, increasing capital expenditures. The company is ramping up production of 4680 battery cells, starting deliveries of the updated Model 3 in the US, investing in supercomputers, and more in today's news roundup from Jowua.

Tesla will invest $500 million to build the Dojo supercomputer at Giga New York

Tesla and New York State Governor Kathy Hochul announced that the company will invest $500 million to build the Dojo supercomputer at Giga New York. Dojo is one of the key technologies to achieve full self-driving cars. The supercomputer processes extensive video data obtained from Tesla's fleet of vehicles, which is then used to hone the skills of the FSD systems. This data is critical for training artificial intelligence algorithms.

Elon Musk also said that in addition to the Dojo project, Tesla is investing heavily in NVIDIA AI processors. The company plans to spend more on NVIDIA equipment than the $500 million allocated for the Dojo supercomputer in 2024.

Tesla's capital expenditures will exceed $10 billion in 2024

The company continues its aggressive development in a variety of industries, achieving impressive success. This requires ongoing costs that are difficult to predict due to many variables. According to its Form 10-K for 2023, the company has planned capital expenditures of more than $10 billion for 2024. The expected capital expenditures for 2025 and 2026 will range from $8 billion to $10 billion per year.

4680 battery cells are no longer a bottleneck for Cybertruck production

The company is gradually increasing production of its new battery cells. As Tesla's Vice President of Supply Chain, Karn Budhiraj said during the Q4 2023 Earnings Call, production of 4680 battery cells has already gained momentum. At the time of the statement, the manufacturer had enough extra batteries in stock to support the equivalent of a few weeks of Cybertruck production.

According to Budhiraj, Tesla is "currently running one production line, one assembly line, using two assembly lines in addition for yield and rate improvement trials." The fourth line is at the commissioning stage. In addition, four more lines are due to be installed in Q3 2024. In addition to Cybertruck, 4680 cells will power the next-generation Tesla vehicle.

Tesla may expand Giga Nevada with CATL battery equipment

According to rumor, Tesla plans to purchase equipment from Contemporary Amperex Technology Co. Ltd.(CATL) for install at the Giga Nevada extension. The BNN Bloomberg report states that Tesla will have full control of the facility and cover 100% of the costs, and CATL personnel will not be involved beyond helping to set up the equipment. The batteries produced via this equipment will be used to produce energy storage systems.

Updated Model 3 delivery officially launched in US

After months of waiting, Tesla customers in the US have taken first deliveries of the updated Model 3. The new model was first introduced in September 2023 in China, Europe, and other markets in the Asia-Pacific region. The first deliveries there also took place in 2023. It was previously expected that deliveries of the updated Model 3 in North America would begin in June 2024, but Tesla has accelerated the release of the new product, at least to the US market.