Tesla has opened $30 billion in lines of credit from Citi and Wells Fargo, according to a regulatory filing reported by Electrek. The move comes as the company's profits have fallen in recent years while it guides for sharply higher capital spending in the quarters ahead.
The facilities carry terms of between one and five years and replace a previous $5 billion credit line that Tesla had filed for but had no current debt drawn against. Tesla says it does not expect to draw from the new credit line in 2026, though the year is nearly over and much of the spending it has planned falls in 2027.
Falling profits, rising CapEx
For most of its first decade and a half, Tesla's sales and revenue only went up, and the company justified heavy spending with what looked like near-infinite demand. That pattern broke in 2024, when growth swung from 38% the prior year to a 1% drop. Since then, profitability has been thin, propped up at times by one-time profits.
At the same time, Tesla's capital expenditures have ballooned. CapEx more than doubled last quarter, and the company expects to spend $25 billion in 2026, up from $8.5 billion in 2025. Analysts expect similar spending levels in 2027, according to the report.
- $30B: total new credit facilities from Citi and Wells Fargo
- 1-5 years: term range for the new loans
- $5B: previous credit line being replaced
- $25B: Tesla's guided CapEx for 2026, up from $8.5B in 2025
