Tesla Lines up $30 Billion Credit Lines as Capex, AI Push Accelerate
The electric-vehicle maker said it will not draw on the facilities this year as it prepares for more than $25 billion in 2026 capital spending.
- On Tuesday, Tesla secured $30 billion in new credit lines, including a $20 billion delayed-draw term loan facility from Citibank, to fund scaling of its Cybercab, Optimus, and Tesla Semi production.
- Rising capital expenditures and falling profits prompted the financing; Tesla reported negative free cash flow for the first time since Q1 2024, with profits declining in recent years.
- Wells Fargo also signed an $8 billion five-year revolving credit facility and a $2 billion 364-day revolving credit facility, while Tesla replaced a previous $5 billion revolving credit agreement.
- Tesla stated in a regulatory filing that it has no borrowings outstanding under these new facilities as of September 29 and does not currently plan to draw on them during 2026.
- Management previously projected at least $25 billion in 2026 capital expenditures targeting AI compute infrastructure and solar cell manufacturing, more than triple the $8.53 billion spent in 2025.
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Tesla has reached a $30 billion credit agreement with Citibank and Wells Fargo amid rising capital expenditures and a weakening financial performance. The company has not drawn down any of the new agreements and said it does not currently plan to draw down the lines of credit through 2026. The document, filed with the U.S. Securities and Exchange Commission, outlines three separate instruments. The first is a $20 billion, three-year, unsecured, …
Tesla is about to borrow much more money while investing heavily in her artificial intelligence ambitions. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Tesla snags $30B in fresh credit lines for expanding its biggest projects
Tesla has secured $30 billion in fresh credit lines from Citibank and Wells Fargo in an effort to scale its biggest current projects. Tesla agreed to a $20 billion three-year delayed-draw term loan facility from Citibank, it announced on Tuesday. Additionally, it signed a five-year, $8 billion revolving credit facility and a $2 billion, 364-day […]
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