Tesla Weighs Dropping Model S/X, Eyes $20B+ Capex This Year
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Tesla is reportedly considering a strategic pivot that could involve discontinuing its Model S and Model X vehicles. The company also expects capital expenditures to exceed $20 billion this year, signaling significant investment in future growth. This capex expectation follows recent analyst projections for substantial investment in compute capacity, providing a company-specific figure for overall spending. Additionally, Tesla's ownership stake in SpaceX has fallen to under 1% after a $2 billion xAI-related investment was converted into SpaceX shares. Traders will monitor any official announcements regarding the Model S/X product line and further details on the allocation of the substantial capex.
At the time of this announcement, TSLA was trading at $362.30 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.4T. The 52-week trading range was $214.25 to $498.83. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Wiseek News.