Tesla Secures $30 Billion Credit Facility
Tesla has signed a $30 billion credit agreement, which it plans to use for expanding artificial intelligence computing power, solar production capacity, and other business ventures.
Electric vehicle manufacturer Tesla has finalized a $30 billion credit agreement, which includes a $20 billion term loan facility. The company intends to allocate a substantial portion of these funds towards enhancing its artificial intelligence computing infrastructure, increasing solar energy production capacity, and supporting semiconductor manufacturing projects in collaboration with SpaceX.
The agreement also features an $8 billion five-year revolving credit facility and a $2 billion 364-day revolving credit facility. These new credit lines replace a previous $5 billion revolving credit facility that expired in January 2028 without any outstanding borrowings.
Tesla had previously projected capital expenditures exceeding $25 billion for 2026. CEO Elon Musk has mentioned a collaborative effort with SpaceX aiming for an annual solar capacity of 200 gigawatts.
Analysts anticipate that Tesla's free cash flow will turn negative this year. The company stated that no funds have been drawn under the new credit facilities and there are currently no plans to utilize them within 2026.