Tesla opened $30 billion in lines of credit according to a regulatory filing today. The loans come as company profits have dropped in recent years, and as Tesla guides for more spending in upcoming quarters.
For its first decade and a half of operation, Tesla sales and revenue basically did nothing but increase. The company grew and grew, at a rapid rate, and justified basically any money spent on chasing more growth with what seemed like near-infinite demand as it scaled.
That lasted until 2024, when Tesla went from 38% growth the prior year to a 1% drop in 2024.
Since then, profitability has been rough for the company, with it having to book some questionable one-time profits in order to eke out profitability. Even with that, profits have remained low.
One downward pressure on profits has been Tesla’s increased amount of capital expenditures as it chases various pie-in-the-sky ideas like cars without steering wheels, cars that don’t gain any performance benefit from flying, and the promise of one man controlling a trillion-dollar robot army.
CapEx more than doubled in the last quarter, and Tesla says that it will remain high in the current environment of extremely high spending by tech companies. The company expects to spend a total of $25 billion in 2026 (up from $8.5 billion in 2025), and analysts expect similar CapEx in 2027.
So, given falling profits and increasing capital expenditures, Tesla is now taking out a big loan to fill the gap.
Today’s regulatory filing shows that Tesla has taken out a total of $30 billion in loan facilities from Citi and Wells Fargo. The loans come in terms between one and five years, and replace a previous $5 billion credit line which Tesla had previously filed for (but had no current debt from).
This is genuinely surprising to me. I feel like I see teslas everywhere now. Might just be cause I notice the.
Just because they’re selling cars doesn’t mean they’re making money on them. It’s ran by Elon Musk, 'nuff said.
As cars are sold over decades most of them tend to stick around and their overall number increases.
True, and I notice them specifically cause I have to hold myself back from throwing pennies a their car.
Use batteries!
Turds pile up on the lawn.
There are a lot of cheaper EVs available and right now the EV market is growing fast.
I see a lot of older models with the badge removed. I guess some people bought them before he went full nazi and this is a form of protestation. Good thing it’s shitty ameritrash and they glued the badge on like a sticker.
That’s pretty much standard these days for an emblem, and has been for decades.
They’re still selling a lot of cars each year, 1.6 mil last year, more this year. Thats a decline though from peak.
So yes you’re going to keep seeing more of them.
And if you decide to spend 25 billion building new factories, becoming unprofitable isnt really surprising. Those are investments in the company. Although given how large a % of those investments are AI related, their value is very uncertain.
Edit: pre AI - historically Tesla has some of the best CapEx spending to profit making in the industry. The cybertruck is the only huge spend that has flopped so far. Cybercab will be next if it fails.
There is a lot of dumb people out there.
Indeed. Some even blanket-dismiss an entire group of tens of millions of people solely based on the brand of car they drive.
I will always dismiss those that support a Nazi.
Don’t assume they support Nazis. Some can’t afford to get out of their car payments.
Ours is paid off, but we’re in a different financial position than we were 8 years ago when we bought it, because of… well everything. We’d sell it but then we’d have to replace it and probably have a new car payment, which we don’t want.
If it’s any consolation, we basically never wash it.
also, might as well keep it, because it has no value used or on trade in.
Tesla won’t even accept Cybertrucks on tradein…how many future customers will that net?
That’s still supporting a Nazi.
Most people DGAF about Musk’s politics when they buy a car.
I try not to, but I definitely do.