Tesla Will Receive a $750 Million Loan from Seven Banks, Musk Has Stellar Plans

Tesla Model S 1 photo
Photo: autoevolution
You have to appreciate Elon Musk's never-fading ambitions for Tesla Motors. It looks like the CEO is willing to do anything for his business, which is what CEOs do, even if that involves massive loans from several banks.
Recently, Tesla settled a deal according to which seven banks will give the company up to potentially $750 million, Fortune reports.

And if you're interested to know which banks are so generous, here they are: Deutsche Bank, Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, and Credit Suisse.

The same source states this payment will go to Tesla Motors but also to the brand's subsidiary in the Netherlands (an assembly plant in Tilburg), and the money will be used to pay capital expenses for the next five years.

One could argue Tesla is currently on a spending spree, and this is not a recent habit. Last year, Elon Musk's car brand was granted $2.3 billion through a convertible bond, an amount that would help Tesla Motors build the Gigafactory.

However, that's not the only financial worry for Tesla. Remember that the manufacturer is planning to launch the Model X crossover as well as the much-awaited Model 3, touted to be offered in both crossover and sedan configuration.

Such moves will require funds if the company wants to enter the market in a powerful and long-lasting fashion.

On top of that, Elon Musk wants to transform Tesla Motors into a highly-valuable company in the next ten years. More precisely, his goal is to grow Tesla into a $700 billion-worth business in the following decade. So it's not very difficult to see why a steady cash flow is needed here, right?
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