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Tesla’s Credit Lines Seen Helping Musk Delay Tapping Wall Street

  • Electric-car company has $1.3 billion in credit available
  • Model 3, SolarCity merger expected to add to cash pressure

Tesla Motors Inc. Chief Executive Officer Elon Musk, who plans to merge the automaker with SolarCity Corp., surprised investors when he tweeted that it would no longer be necessary for either company to raise equity or borrow money this quarter. That doesn’t mean he’s flush with cash.

What Musk does have is $1.3 billion in credit lines that Tesla can tap to keep the company hobbling along into next year, when analysts expect that he will need to raise as much as $2.5 billion to produce Tesla’s mass-market Model 3 sedan, build out the Gigafactory battery plant and to keep cash-burning SolarCity going.