Tesla takes on $30B in credit as it approaches unprofitability

Tesla has secured $30 billion in new credit lines from Citi and Wells Fargo as the company faces declining profitability and surging capital expenditures. The company's profits have deteriorated significantly since 2024, while capital spending is expected to more than triple to $25 billion in 2026, forcing Tesla to take on debt despite holding $43 billion in cash reserves. Tesla experienced negative cash flow last quarter for the first time since early 2024, raising concerns about its financial trajectory.