Tesla takes on $30 billion in credit as it approaches unprofitability

Tesla has lined up $30 billion in credit from Citi and Wells Fargo, a filing shows, as the company's profits shrink and its spending climbs. This is mostly a corporate finance story, not one with a direct step for homeowners, but it's worth knowing about if you're weighing a Tesla product, like a home battery or solar panels, or watching EV and clean-energy markets generally.

Tesla's sales growth stalled in 2024, and profits have been thin since, propped up at times by one-time items. Meanwhile spending has surged: capital expenditures more than doubled last quarter, and Tesla expects to spend $25 billion in 2026, up from $8.5 billion in 2025, with similar spending expected in 2027. Much of that money is going toward long-term projects like driverless "Cybercab" vehicles, a new Roadster, and robotics, none of which are generating much revenue yet. Last quarter the company also burned through cash for the first time since a sales slump in early 2024.

The new credit line replaces a smaller $5 billion facility and gives Tesla a cushion, on top of the $43 billion it already holds in cash, to cover operations and these newer ventures. Tesla says it doesn't expect to tap the loan this year. None of this changes pricing or incentives on Tesla's home energy products right now, but it signals the company is under more financial strain than in its earlier years of rapid growth.