Tesla raises borrowing capacity for car leases to $1.1 billion

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October 20, 2017 5:40 PM EDT

FILE PHOTO: Tesla introduces one of the first Model 3 cars off the Fremont factory's production line during an event at the company's facilities in Fremont, California, U.S. on July 28, 2017. REUTERS/Alexandria Sage/File Photo

(Reuters) - Tesla Inc (NASDAQ: TSLA) 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. (http://bit.ly/2yx2P58) 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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