Tesla(US:TSLA) Huan Qiu Wang·2025-06-22 02:21Core Viewpoint - Tesla has disclosed significant capital expenditures and plans for further investments, particularly in AI and production capacity, while facing potential cash flow challenges and regulatory hurdles [1][5]. Group 1: Capital Expenditures - As of early this year, Tesla's cumulative capital expenditures reached approximately $44 billion, with $10 billion spent in the last fiscal year [1]. - For the current fiscal year, Tesla plans to invest an additional $8 billion, focusing on AI development, construction of the Mexico factory, and upgrades to the Cybertruck production line [1][3]. Group 2: AI Investments - AI is a central focus of Tesla's investment strategy, with $10 billion allocated for AI in 2024, nearly half of which is dedicated to self-developed AI inference computers, onboard sensors, and the Dojo supercomputer [3]. - The Cortex computing center, used for smart driving training, has deployed over 50,000 GPUs, with expectations to exceed 100,000 by year-end, positioning it among the top five supercomputing centers globally [3]. - The upcoming Dojo 2 supercomputer is set to enhance computing power by tenfold compared to its predecessor, accelerating the iteration of the Full Self-Driving (FSD) system [3]. Group 3: Production Capacity and Robotaxi Challenges - Tesla's capital expenditures also include the construction of the Mexico factory, which is crucial for expanding production capacity for the Model Y and future models [4]. - The launch of the Robotaxi pilot program in Texas has been delayed due to regulatory requirements, with a request to postpone until September to meet public safety standards [4]. - Despite regulatory challenges, the commercial rollout of Robotaxi is seen as a critical phase, with expectations for the FSD V14 version to focus on pedestrian path prediction and audio data processing capabilities by the second half of 2025 [4]. Group 4: Cash Flow Concerns and Market Ratings - Tesla's aggressive investment strategy has raised concerns about cash flow, with warnings from analysts that maintaining a capital expenditure of $11 billion could lead to negative free cash flow by 2025, the first occurrence since 2018 [5][6]. - Wells Fargo has reiterated a "sell" rating on Tesla's stock, setting a target price of $120, and predicts a second-quarter vehicle delivery of only 343,000 units, 17% below market expectations [6]. - The reduction in zero-emission vehicle credit revenue and declining delivery volumes may further impact Tesla's profitability [6].