The $20B term loan is designed to decrease in available size over time and fully expire by March 2028 if it remains unused. This borrowing expansion comes while Tesla holds $43.5B in cash but faces a lapped 1.4% operating margin and a $1.1B free cash flow loss in the second quarter. Regulatory credits also fell to $146M in Q2 from quarterly peaks of $500M in 2025, and the new credit agreements require the automaker to maintain $5B in minimum liquidity.
Tuesday, October 20, 2026
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Tesla Replaces $5B Revolver With $30B Credit Facilities
Earnings21 days ago
Tesla projects capital expenditures to exceed $25B for 2026, with roughly $17B of that spending planned for the second half of the year. To buffer this outlay, the company replaced an unused $5B revolving line with $30B in new unsecured credit facilities on Sept. 29, 2026. The new arrangement consists of a $20B three-year delayed-draw term loan and $10B in revolving credit, though the company has no plans to draw on the funds before the end of the year.
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