Tesla lines up US$30 billion to borrow with spending on the rise

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Photo by Justin Sullivan/Getty ImagesTesla Inc. has lined up US$30 billion of new loans and credit lines, as the electric-car maker dials up investments in artificial intelligence and robotics.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe company said it has entered three credit agreements, including a US$20 billion term loan that it can draw on later, an US$8 billion line of credit for five years, and a US$2 billion line of credit for about one year. The company doesn’t currently plan to draw on any of the facilities this year, it said in a filing.This advertisement has not loaded yet, but your article continues below.The facilities replace a previous US$5 billion of line of credit that was set to mature in January 2028. Citigroup is administrative agent for the new delayed-draw term loan, and Wells Fargo & Co. is administrative agent for the credit lines.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againTesla is significantly increasing capital spending to advance chief executive Elon Musk’s push to transform the maker of electric vehicles into a leader in humanoid robots and artificial intelligence. The company plans to spend more than US$25 billion this year to expand its factory operations and its fleet of autonomous Cybercab robotaxis, and plans to spend even more in the future.“We should be spending on capex as fast as we can — spend as fast as we can without it being too wasteful,” Musk said on the company’s July earnings call.Musk has also hinted at the possibility of combining Tesla with SpaceX, the AI and rocket firm that he is also chief executive of. The two companies cooperate, for example on a Terafab project that will eventually manufacture chips for robotics, AI and space data centres.Earlier this month during an appearance at a conference, Musk was asked why the companies are separate.This advertisement has not loaded yet, but your article continues below.“Great question,” he responded. “Who could imagine what action one might take when there’s so much close collaboration in so many areas?”Under it new credit lines, Tesla has the option to increase the commitments by as much as US$4 billion, potentially increasing the facilities to US$14 billion total. Loans under the five-year line of credit can be denominated in U.S. dollars, pounds sterling, or euros, while those under the shorter-term line are denominated in U.S. dollars.With assistance from Ryan BeeneThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.