Pixel Envy

Written by Nick Heer.

Tesla Adds Fremont Factory to Its Line of Credit Collateral

Alexandra Scaggs, Financial Times:

While observers were preoccupied with its CEO’s personal life, Tesla disclosed it has added its Fremont, Calif. factory to a pool of collateral backing its US asset-based revolving credit line from nine banks.

CreditSights analysts called attention to the addition of the Fremont factory — a 5.3m-square-foot facility that was previously home to a famous joint venture between GM and Toyota — in a Tuesday note. The electric carmaker also said vehicles in or on their way to Belgium could be included in the base of collateral for its Dutch borrowings.

About six months ago, the Economist wrote about the rarity of future success for firms with billion-dollar debts. Watch this space.