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Barchart
Barchart
Nauman Khan

Tesla’s $250 Million Germany Bet Is Interesting. It’s Spending More Before It Has the Payoff.

Tesla (TSLA) is in the news again, which is not always a source of comfort for investors. The company is still leaning hard into artificial intelligence (AI), autonomy, robots, and batteries, while its core electric vehicle (EV) business keeps sending mixed signals. That is the big tension in Tesla right now. On one hand, TSLA stock keeps getting support from robotaxi hopes, Full Self-Drivign (FSD) chatter and China strength. On the other, the company is also heading into a heavy spending cycle that could pressure cash flow later this year. 

Tesla now says it will put almost $250 million more into battery cell production at its plant in Berlin, Germany, lifting planned annual capacity to 18 gigawatt-hours (GWh). That is good strategic news, but it also reminds investors that Tesla is spending more before it has fully proven the payoff.

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