Tesla, Inc. has increased its borrowing capacity for a second time in the last six months, according to Automotive News. Striking a deal with creditors, the company has managed to increase its lines of credit by $800 million to $3.825 billion as the company ramps up spending to launch the new Model 3 sedan.
The company previously increased credit lines back in December and raised additional working capital through equity and debt offerings in March. Both capital events were intended to raise the funds needed to begin Model 3 production this summer.
The credit increase comes as little surprise. Tesla has burned cash over the last two quarters and previously signaled it has plans to increase capital expenditures in the coming months. The company’s cash position should be positively impacted once Model 3 deliveries begin to happen, bringing in additional needed cash.