Tesla opened credit lines worth $30 billion
Tesla has opened credit lines totaling $30 billion to finance major investments amid declining profits and rising capital expenditures. The new agreement expands the company's financial flexibility as it faces increasing pressure on its business.
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According to the latest SEC report, Tesla has opened credit lines totaling $30 billion with the participation of Citi (Citigroup) and Wells Fargo banks. The loan terms range from one to five years. This new agreement replaces the previous $5 billion credit line.
Establishing these credit lines does not automatically increase the company’s debt burden. Instead, the agreement gives Tesla the flexibility to access additional funds if needed, creating a financial safety net for the company.
Currently, Tesla’s profits are under significant pressure. After a prolonged period of growth, revenue increased by 38% in 2023, but in 2024, the company’s business contracted for the first time by about 1%. Profits have also declined, though they remain in the range of several hundred million euros.
At the same time, there has been a sharp rise in capital expenditures. Investment spending (CapEx) is expected to reach $25 billion in 2026, up from $8.5 billion in 2025. These investments include projects such as flying cars and robotic systems. As a result, investments now exceed operational cash flow amid declining profits.
The new $30 billion credit agreement was signed despite Tesla still holding around $43 billion in reserves, which, according to estimates, will no longer be sufficient to cover expected investments starting in 2027.