Tesla’s Cash Crunch Has Arrived—Blame Its AI Ambitions

Tesla is set to borrow a lot more money as it invests heavily in its AI ambitions. Tuesday, the EV maker entered into $25 billion in new credit facilities, including a $20 billion three-year delayed draw facility, an $8 billion senior unsecured revolving credit facility, and a $2 billion senior unsecured 364-day facility. “The proceeds of loans under the Facilities, and letters of credit issued under the Five-Year Revolving Facility, may be used for general corporate purposes or for any other purpose not otherwise prohibited by the applicable Credit Agreement,” reads part of Tesla’s filings.