Cathie Wood Just Bought More Tesla as a Bear Sounds a $30 Billion Warning
Source: GuruFocus.com ·
Tesla says it has no plans to tap its new credit facilities this year, but its massive AI and manufacturing spending is putting future cash needs under scrutiny.
From the source
This article first appeared on GuruFocus . Tesla ( TSLA , Financials ) has $43.52 billion in cash and short-term investments , but its recent funding maneuver raises concerns about its expansion costs.The electric-vehicle producer obtained $30 billion in bank credit facilities Tuesday, including a $20 billion three-year delayed-draw term loan, a $8 billion five-year revolving credit facility, and a $2 billion 364-day revolver.Tesla stated that it does not currently plan to draw on the facilities in 2026. Longtime Tesla bear GLJ Research analyst Gordon Johnson sees the structure differently. Johnson mentioned the $20 billion delayed-draw facility, whose pledges drop to $10 billion on Sept. 29, 2027, and $5 billion on Dec. 29, 2027, before ending in March 2028.He says the plan implies 2027 might be crucial for Tesla's finance requirements as it invests in AI infrastructure, production, and vehicles.Tesla anticipates capital expenditures to top $25 billion this year. It would require…