Tesla Stock Rises as EV Maker Unveils Big Spending Plans on Various Projects, Including AI

Tesla ( TSLA ) shares were more than 3% higher Monday afternoon after the electric vehicle (EV) maker said it would be spending tens of billions of dollars on a variety of projects over the next few years.

The company said in a regulatory filing that it expects its capital expenditures to be more than $10 billion this year, and between $8 billion and $10 billion the following two years.

Tesla said that is its simultaneously “ramping new products, building or ramping manufacturing facilities on three continents, piloting the development and manufacture of new battery cell technologies, expanding our Supercharger network and investing in autonomy and other artificial intelligence enabled training and products.”

As for how to pay for all that, Tesla said that its cash flow from operations has been consistently in excess of capital expenditures, and sales growth has also generally facilitated positive cash generation.

The company noted that the rate of its spending will vary “depending on overall priority among projects, the pace at which we meet milestones, production adjustments to and among our various products, increased capital efficiencies and the addition of new projects.”

Tesla added that overall, it anticipates its ability to self-fund its plans will continue “as long as macroeconomic factors support current trends in our sales.”

Tesla shares were up 3.2% at $189.12 at 2:15 p.m. ET on Monday. Even with those gains gains, shares of Tesla have lost more than 20% of their value since the start of the year. The stock fell sharply last week after the company announced fourth-quarter earnings that were short of market expectations and noted that vehicle volume growth could be “notably lower” in 2024.