Tesla closes $30 billion package of term loan and revolving credit facilities

Tesla lined up a much larger bank backstop. In a Tuesday 8-K, the company said it entered three senior unsecured credit agreements totaling $30 billion of commitments: a $20.0 billion three-year delayed-draw term loan facility with Citibank as administrative agent; an $8.0 billion five-year revolving facility with Wells Fargo Bank as administrative agent; and a $2.0 billion 364-day revolving facility, also with Wells Fargo as agent. Shares last closed Tuesday at $352.84, down about 1.3% on the day and about 20% year to date.

Tesla may draw the term loan no more than ten times during the 18 months after closing. Undrawn term-loan commitments automatically step down to $10.0 billion on the first anniversary, to $5.0 billion 15 months after closing, and any remainder terminates at 18 months. Term loans mature Sept. 29, 2029. The five-year revolver can fund in dollars, pounds sterling, or euros, includes up to $500 million of letters of credit, and terminates Sept. 29, 2031, with up to two one-year extension options subject to conditions. The 364-day facility matures Sept. 28, 2027, with a term-out option to extend outstanding loans one year if conditions are met. Tesla may also seek up to $4.0 billion of additional revolving commitments across the revolvers, potentially raising that sleeve to $14.0 billion.

Proceeds and letters of credit may be used for general corporate purposes or any other purpose not prohibited by the agreements. No loans were outstanding under the new facilities as of Sept. 29. Dollar borrowings price off Term SOFR or an alternate base rate plus a margin tied to Tesla’s senior unsecured ratings (or issuer rating in some cases); sterling and euro draws under the five-year facility use SONIA and adjusted EURIBOR, respectively, plus a margin. Tesla pays commitment fees on unused revolving commitments and a ticking fee on undrawn term-loan commitments.

In connection with the new package, Tesla and its lenders terminated the company’s prior revolving credit agreement dated Jan. 20, 2023, which had $5.0 billion of commitments and was set to mature Jan. 20, 2028. Tesla said it had no borrowings outstanding under that facility and incurred no early termination penalties. Some lenders under the old revolver, or their affiliates, are lenders under the new facilities.

By the numbers

• New commitments: $20B delayed-draw term loan + $8B five-year revolver + $2B 364-day revolver
• Potential revolver upsizing: up to +$4B (to $14B aggregate revolvers)
• Term-loan undrawn step-downs: $10B at 1 year; $5B at 15 months; remainder ends at 18 months
• Prior revolver terminated: $5B facility (no outstanding borrowings; no early termination penalty)
• Loans outstanding under new facilities at signing: none
• TSLA Tuesday close: $352.84 (−1.3% day; −19.5% YTD)

Sources

1. Tesla, Inc. Form 8-K (Items 1.01, 1.02, 2.03), accepted Sept. 29, 2026 4:38:50 p.m. ET, accession 0001628280-26-063820

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