Tesla lined up $30 billion of credit. Its spending nearly triples this year.
Tesla arranged facilities with Citi and Wells Fargo running for one to five years, according to a Tuesday filing reported by Electrek.
Borrowings can fund operations or capital investment, including self-driving vehicles and experimental products.
Capital spending is expected to rise from $8.5 billion in 2025 to $25 billion this year. Analysts expect capital spending near that level in 2027.
Tesla says it does not expect to draw on the credit line in 2026. It also holds $43 billion in cash.
But recent quarterly profits have been only a few hundred million dollars, according to Electrek, and cash flow turned negative in the latest quarter for the first time since early 2024.
Why would a company with $43 billion in cash line up $30 billion of credit it does not plan to use this year?
Sources
Our file on Tesla
- 3 Oct
Tesla delivered 2% fewer cars than a year ago. It beat Wall Street's forecast.
- 27 Sept
Tesla's driver-assist software sped in 55% of Brussels 30 km/h zones tested.
- 26 Sept
Tesla builds hundreds of robots a week. Their AI still can't handle varied tasks.
- 23 Sept
Tesla wants 50,000 dollars up front. The price is still unknown.
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