During the Q3 earning calls, Elon Musk state that Tesla Motors might not need to borrow money or raise capital in the fourth quarter, On December 21, an authority filing disclose that the company has increased its borrowing ability by almost $500 Million under the two new credit agreements. A Netherland subsidiary have added up to $200 Million with Deutsche Bank to an existing line of credits, catching up total borrowings of $1.2 Billion.
There is another borrowing of $50 Million built into the agreement that Tesla can work on later. In another different transaction, Tesla Finance LLC and other finance unit increased the size of a different credit agreement of $300 Million to over $600 Million. Said a company’s spokesman that Tesla isn’t commenting ahead the content of the filling agreement to expand. In October, Musk’s announcement on not to raise the borrowings or increase the capital before the end of the year was surprising for the investment community. Many of the analyst said that they need to raise as much as $2.5 Billion soon with respect to pay for the future expansion plans of the company.
Not long ago, the company Tesla has achieved approval from Fremont to double the size of its production facilities as it raise up for the launch of the Model 3. Pushing ahead with construction of the Gigafactory in Nevada and preparing to start the production of its new Solar Roof photovoltaic tiles which is anticipated by the company to be ready for the market around the middle of next year. An analyst with Morningstar Inc. in Chicago, David Whiston to Bloomberg said that “ I don’t think it is shocking that over the time Tesla needed more funding. Tesla is young and have big borrowing plans. So over the time i would expect more capital raising and more revolving capacity”.
Tesla is very secretive about its financial plans. Else wise Elon Musk will have more to say on the subject at the earnings of Q4 conference call early in February with investors.