Tesla’s CEO Elon Musk has big plans for expansion, which means big spending. Tesla shares fell nearly 4% on Friday morning as investors remain cautious.

So, what’s the fuzz

Tesla’s annual meeting was held Thursday night, and a 3-for-1 stock split was the big item on the agenda. The split, which Tesla said would provide employees and individual investors with more access to electric vehicle stock, was approved by shareholders.

This meeting was no exception to Musk’s bold growth targets. Tesla aims to sell 20 million vehicles annually by 2030, up from 936,222 last year. By the end of the decade, Tesla will need upward of a dozen assembly plants to produce 1.5 million to 2 million vehicles a year at each factory.

The original Tesla plant in California and Tesla’s facility in China carry most of the load at the moment. The two newest plants, in Texas and Germany, were described as “gigantic money incinerators” by Musk in June.

For Tesla to meet Musk’s 2030 production goals, it will need to spend a lot of money on capital. Approximately $5 billion to $7 billion was spent on the German plant’s construction. Musk also needs to figure out how to do future construction more efficiently so it does not become a cash drain like the current plants.

What should I do?

While Tesla finished the quarter with more than $18 billion in cash, automakers are required to always maintain billions in reserves due to automobile manufacturing’s capital-intensive nature. For Tesla to build new factories, it will have to raise more capital.

Most of that will likely come from debt financing, but at some point, Tesla will need to tap equity markets again to fund its expansion plans. In contrast to stock splits, secondary offerings impact a current investor’s total ownership stake, which may explain the negative reaction to the meeting.