00:00Tesla shares meanwhile swung to losses in extended trade as it revealed plans for $25 billion in
00:05capital expenditure this year. That's a $5 billion increase and that came after quarterly
00:11earnings beat expectations with demand for its electric vehicles rebounding worldwide.
00:16Senior Tesla reporter Dana Hull joins us now from San Francisco. Dana let's start with that
00:22demand question. Things appear to be turning around for Tesla. Where's the demand coming
00:27from for EVs? Well they sort of nodded to the fact that high gas prices have kind of made consumers
00:33more interested in EVs again and that they're seeing growing demand in core European markets
00:39particularly France and Germany and that more and more customers are liking their FSD offering. So
00:45we'll see you know how that goes as the year progresses but they were signaling that demand has
00:50returned. What about looking forward in terms of the capex spending seems to have invested
00:57at least in the short term a little bit worried? Yeah what was really interesting was that when
01:02the release dropped the you know shares were trading up and then as soon as the call began
01:06and they started talking the shares dropped because they kind of revealed this eye-popping
01:11$25 billion capex spending plan which is more than in the previous quarter and this was a number that
01:18was not in the earnings deck. So you know Tesla is going to spend big this year on AI compute,
01:23on the TerraFab, on their TerraFab factory. They also announced that they're going to have to fix a
01:29lot of cars. Cars that have the hardware 3 are not really capable of FSD unsupervised so
01:37there's going to be a lot of spending and that figure I think has investors a little worried.
01:44Worried how though Dana because you know Tesla's got a lot of ambitious plans. I mean you mentioned
01:48some of them there but also robotics as well it's going to have to spend quite a lot of money
01:53to
01:53realize these surely. Right I mean 25 billion in a year to spend 25 billion this year that's an
01:59enormous outlay of capital and I think that's why you're seeing you know sentiment after hours
02:05trending downward. We also still don't have a clear sense of the product product timeline in terms
02:12of the vehicle. Like going forward it's all about Optimus, the robotics, and AI. There's not a lot
02:18of other vehicles in the pipeline. Musk said that long term the only car that will be manually driven
02:23is the next generation Roadster which we may see a reveal of sometime later this spring but that's
02:29not going to be a high volume vehicle.
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