Tesla Secures $30B in New Credit Facilities and Terminates $5B Facility

Overview & Material Events

On September 29, 2026, Tesla, Inc. entered into three new senior unsecured credit agreements totaling $30.0 billion in aggregate commitments, substantially strengthening its committed liquidity profile. Concurrently, the company terminated its existing $5.0 billion revolving credit agreement.

Key Terms of the New Facilities

1. $20.0 Billion Delayed Draw Term Loan (DDTL) Facility

   • Agent: Citibank, N.A.
   • Maturity: September 29, 2029 (3 years).
   • Draw Provisions: Up to 10 draws during an 18-month availability window. Commitments automatically step down to $10.0 billion at month 12, $5.0 billion at month 15, and terminate at month 18.
   • Fees: Ticking fee on daily undrawn commitments based on credit ratings.

2. $8.0 Billion Five-Year Revolving Facility

   • Agent: Wells Fargo Bank, National Association.
   • Maturity: September 29, 2031 (with up to two 1-year extension options).
   • Currency Options: U.S. dollars, pounds sterling (SONIA), and euros (adjusted EURIBOR).
   • Sub-facilities: Includes up to $500 million for letter of credit issuance.

3. $2.0 Billion 364-Day Revolving Facility

   • Agent: Wells Fargo Bank, National Association.
   • Maturity: September 28, 2027 (includes a 1-year term-out option).
   • Expansion Feature: Tesla holds the right to accordion/increase commitments across the revolving facilities by up to $4.0 billion, potentially expanding total revolving capacity to $14.0 billion.

Pricing, Covenants & Financial Position

• Pricing: Variable interest rates based on Term SOFR or Alternate Base Rate plus rating-based margins.
• Liquidity Covenant: Requires Tesla to maintain at least $5.0 billion in consolidated liquidity.
• Current Utilization: Zero loans were outstanding under the facilities as of September 29, 2026. Tesla explicitly noted it does not currently plan to draw on the facilities in 2026.

Termination of Existing Facility

Tesla terminated its prior Credit Agreement, dated January 20, 2023, which provided for a $5.0 billion revolving facility maturing in January 2028. No borrowings were outstanding, and no early termination penalties were incurred.