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Tesla raises borrowing capacity for car leases to $1.1 billion

Posted by: Admin | Posted on: October 21st, 2017 | 0 Comments

(Reuters) – Tesla Inc (TSLA.O) said on Friday it has increased its borrowing capacity for a car lease program to $1.1 billion from $600 million.

The move comes as the electric car maker spends heavily to fix production bottlenecks of its new Model 3 sedan.

The company increased the borrowing capacity under certain warehouse agreements, the company said in a filing. ( A spokesman said it was related to Tesla’s car lease program.

In August, Tesla said it would raise about $1.5 billion through its first-ever offering of junk bonds as it seeks fresh sources of cash to ramp up production of its new Model 3 sedan.

Reporting by Laharee Chatterjee in Bengaluru; additional reporting by Peter Henderson; Editing by Shounak Dasgupta and Cynthia Osterman

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