Tesla Inc. boosted its ability to borrow for the second time in about six months, as Chief Executive Officer Elon Musk spends heavily to bring his cheapest electric car yet to market.
The company expanded credit agreements by a combined $800 million to $3.825 billion, according to a regulatory filing Friday. Tesla boosted its credit lines in December and raised money with equity and debt offerings in March to bolster its balance sheet before starting production this summer of the more affordable Model 3 sedan.
After burning through cash the last two quarters, Tesla flagged it intends to ramp up capital expenditures in the three-month period ending in June. With plans to price the Model 3 close to $35,000 before incentives, the vehicle looms as the linchpin in Musk’s ambitions to manufacture at high volumes and achieve the profitability that’s largely eluded the company.
Tesla shares slipped about 0.2 percent from its closing share price Friday to $382.81 as of 4:38 p.m. in New York. The stock has surged 79 percent this year.