Tesla Secures $500 Million In New Borrowing Capacity From Lenders
As part of its rapid expansion push following an unprecedented number of $1,000 deposits for the Model 3, Tesla has secured a further $500 million in borrowing capacity from its lenders through newly amended agreements, according to recent reports.
As a reminder, Tesla is currently claiming that large-scale deliveries of Model 3 sedans will have begun by this time next year. Mass production is slated to begin by late summer, going by the company’s timeline.
Another important reminder: for the company’s Model 3 production timeline to be achieved, it’s not just a matter of getting production processes at its Fremont facility up to snuff, but also of getting the Gigafactory’s battery production ramped up. There are a lot of things that need to be coordinated.
Automotive News provides more on the new/increased funding: “The parent company and a Netherlands subsidiary on December 15 increased a revolver line by $200 million to $1.2 billion through Deutsche Bank AG, with potential to add another $50 million, Tesla said in a regulatory filing Tuesday. Tesla Finance LLC and another finance unit doubled the size of a separate credit facility to $600 million, the filing said.”
Good news for the company. Though, very unsurprising — after all, the company currently holds a very good hand, despite what paid shills might type, but also needs to expand quickly. The company’s situation could change in the future, though. … Late 2017 and early 2018 should be very interesting as an observer.
Image by Michael Liebreich / BNEF
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