Tesla is securing up to $30 billion in new credit facilities, marking a shift toward debt financing. The company plans to use these funds to support capital expenditures exceeding $25 billion in 2026, which is more than triple the previous year's spending. Investments will focus on AI infrastructure, robotaxi fleet expansion, and semiconductor production.
In Q2 2026, Tesla reported its first negative free cash flow in over two years, totaling a loss of $1.092 billion. Capital expenditures for the quarter reached $5.789 billion, more than double the year-over-year figure. Despite this, the company achieved record deliveries of 480,126 vehicles and revenue of $28.236 billion, a 26% increase compared to the same period last year.
As of June 30, 2026, Tesla held $43.5 billion in cash and short-term investments, with total debt at $9.08 billion. CFO Vaibhav Taneja described the new borrowing as an opportunistic move to accelerate growth. Fitch Ratings recently assigned Tesla an inaugural BBB long-term issuer default rating, which allows the company to access a broader range of institutional lenders.
The investment-grade rating from Fitch is supported by Tesla's liquidity framework and historical EBITDA margins in the mid-teens. This status enables the automaker to attract conservative capital allocators, including pension and insurance funds, potentially lowering future borrowing costs.
