Tesla has negotiated credit lines with Citibank and Wells Fargo for a total of $30 billion against a backdrop of rising capital expenditures and weakening financial results. The company has not drawn down funds under the new agreements and says it does not currently plan to use the credit lines in 2026.
The document filed with the U.S. Securities and Exchange Commission provides for three separate instruments. The first is a three-year, $20 billion unsecured term loan with deferred drawdown, for which Citibank is the administrative agent. Tesla can draw down funds under it up to 10 times within 18 months of signing the agreement.
The remaining $10 billion is divided between two revolving credit lines. One is for $8 billion with a five-year term, and the other is for $2 billion with a 364-day term. Wells Fargo is the administrative agent for both lines.
Old credit commitment terminated
The new package replaces an existing $5 billion revolving credit facility agreed in January 2023. It was due to expire in January 2028, but Tesla had no outstanding loans under it and did not pay a penalty for its early termination.
Under certain conditions, the company can increase the total amount of the two revolving facilities by up to another $4 billion. Under the agreement, Tesla must maintain at least $5 billion in consolidated liquidity.
2026 Expenses Exceed $25 Billion
The credit package comes as Tesla ramps up its investments in AI computing infrastructure, manufacturing facilities and new projects. The company expects its capital expenditures in 2026 to exceed $25 billion, up from $8.53 billion in 2025.
Electrek says Tesla had about $43 billion in cash on hand as of its latest quarterly report. The outlet also notes that the latest quarter was the first since the first quarter of 2024 that the company reported negative cash flow.
This does not mean that Tesla has already taken out $30 billion in debt. As of September 29, no funds had been drawn on the new facilities. They provide additional access to financing if the company's expenses and cash needs increase in the coming quarters.
Sources: Electrek, Reuters