Tesla credit facilities totaling $30 billion will give the electric-vehicle maker access to a delayed-draw term loan and two revolving lines, although no borrowings were outstanding at signing.
Tesla (NASDAQ: TSLA) said it does not currently plan to draw on the facilities in 2026. The agreements expand available liquidity without immediately adding funded debt, but unused commitments will carry fees.
Tesla Credit Facilities Include $20 Billion Term Loan
The largest component is a $20 billion senior unsecured term-loan facility that Tesla can draw no more than 10 times over 18 months, according to its official SEC filing. Outstanding loans will mature in September 2029.
Undrawn term-loan commitments automatically fall to $10 billion after one year and $5 billion after 15 months, with the remainder expiring after 18 months. That schedule creates a limited window for Tesla to use the full capacity.
The company also arranged an $8 billion five-year revolving facility and a $2 billion 364-day revolver. The five-year line includes up to $500 million of letters of credit and can support borrowings in dollars, pounds or euros.
Revolving Capacity Could Increase by $4 Billion
Tesla can request as much as $4 billion of additional commitments across the two revolvers, subject to conditions. If lenders agree, total revolving capacity could reach $14 billion.
Dollar loans will carry variable rates tied to either Term SOFR or an alternate base rate, plus margins based on Tesla’s unsecured credit rating. Sterling and euro borrowings under the five-year facility will use SONIA and adjusted EURIBOR, respectively.
Proceeds may be used for general corporate purposes or other uses permitted by the agreements. Tesla must maintain at least $5 billion of consolidated liquidity and comply with restrictions on liens and debt at certain subsidiaries.
The new arrangements replace a $5 billion revolving agreement that was due in 2028. Tesla had no borrowings under the old line and paid no early-termination penalty. Future quarterly filings will show whether the company draws funds and how commitment fees affect interest expense.
