Why Elon Musk Is About to Spend a ‘Staggering’ Amount of Money
Where the rubber hits the road on an extra $763 million in spending
Tesla Sales Are in the Slow Lane
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One has to spend money to make money, as the saying goes. And one has to spend a lot of money to make cars.
Tesla Motors said on Wednesday that it expects its capital expenditures and research and development costs to swell 50 percent this year. Chief Executive Officer Elon Musk said investors should be prepared for “staggering amounts” of spending. The question is whether Tesla’s technology—and the demand for its cars—can stay strong enough, long enough for the company to see returns on that pile of cash.