California-based electric auto manufacturer Tesla Motors has announced recently it decided, alongside one of its subsidiaries – Tesla Motors Netherlands BV – to enter into a $500 million senior secured asset-based revolving credit deal.
The arrangement was secured with a group of banks, among them being Deutsche Bank, Bank of America, according to the company. The firm also added it might increase the total commitments under the facility by up to $250 million and also brings a $100 million letter of credit sub-facility and a $40 million swingline loan sub-facility, said Tesla. The company disclosed the money would be directed towards working capital and general corporate purposes, with Tesla announcing last month it set up a strategy to invest a total of $1.5 billion this year, mostly to secure the production tools for its new product – the electric sport utility vehicle Model X – finishing up its massive battery “Gigafactory” in Nevada and for spending across other facilities.
Back in May, the Silicon Valley-based electric car maker also announced the creation of a new unit – Tesla Energy – focusing on storage systems or batteries for homes, companies and utilities as it seeks to expand its business beyond the sales and production of pure electric vehicles. The company is also expanding its lineup of cars, with the addition of the Model X crossover this year and of the Model 3 affordable sedan planned for 2017. Meanwhile, the Nevada Gigafactory would provide the necessary batteries for both the electric autos and the new product lines of Tesla Energy.