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Tesla completes $499 million sale of solar equipment debt

Credit: Tesla

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Tesla has completed another debt sale, this time backed by loans offered to customers purchasing solar equipment from the company.

After Tesla last month raised $783 million in a debt sale of prime automotive leases, the company this week sold $499 million of bonds backed by solar loans from its customers, as reported by Bloomberg. The five-tranche sale first started being marketed by Deutsche Bank on Monday, before being completed on Friday.

Fitch Ratings gave all five tranches of the deal an investment-grade rating, due to the high credit scores held by those who are getting the solar financing. According to people familiar with the matter, every tranche also had more orders than supply available, while the top tranche had a 4.83-percent coupon attached to it.

Deutsche Bank estimates Tesla China’s October 2024 domestic results

The sale allows Tesla to access liquid finances without having to tap into additional debt sources, and debt sales have become increasingly common across sectors, including the automotive and energy industries. Tesla has also sold bonds related to its solar business in the past, including multiple rounds of bond sales upon its acquisition of SolarCity in 2016.

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So far this year, Tesla has issued $2 billion worth of asset-backed debt, compared to almost $4 billion in 2023. Debt markets are also ballooning at the current time, with asset-backed securities across industries reaching $321 billion this year, according to Bloomberg data. Solar-related debt sales have increased to $5 billion in 2024, compared to roughly $3.7 billion last year.

Credit: Bloomberg

Tesla reported its Q3 earnings last month, posting $25.18 billion in revenue, $20.02 billion of which came from the company’s automotive sales. The company also reported $2.7 billion in GAAP operating income, a $6.3-billion operating cash flow, and an EPS of $0.72.

The company’s energy division also reported a record gross margin of 30.5 percent in Q3, following suit with Elon Musk’s predictions that Tesla Energy’s sales growth would quickly become one of the company’s highest-margin sectors.

 

Tesla Megapack exec promoted to VP of Energy and Charging

Need accessories for your Tesla? Check out the Teslarati Marketplace:

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla Model Y L attracts crowds across China stores

The Tesla Model Y L is shaping up to be a big hit in China.

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Credit: @thaichiminh1907/X

Tesla has officially rolled out the Model Y L, a six-seat variant of its best-selling SUV, across all showrooms in China, and it is getting a lot of attention from potential buyers.

Images and videos from Tesla stores in China show crowds of people checking out the recently released extended wheelbase all-electric crossover.

Model Y L details

The vehicle, which carries a starting price of RMB 339,000 ($47,180), went live in Tesla China’s configurator this week. Deliveries are scheduled to begin in September, and early media reviews have already been released following the lifting of an embargo.

Unlike a full model refresh, the Model Y L is positioned as a new variant within the existing Model Y lineup. It joins the five-seat rear-wheel drive (RWD) and long-range all-wheel drive (AWD) Model Y variants currently available in China.

The six-seat Model Y L features dual-motor all-wheel drive, a 0–100 km/h time of 4.5 seconds, and an 82.0-kWh battery pack from LG Energy Solution. Its CLTC-rated range reaches 751 km, the highest among Tesla’s Model Y trims.

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So far, the reception to the Model Y L appears to be very warm, with photos and videos of stores in locations such as Shanghai and Shenyang showing numerous people checking out the recently released vehicle. Reports from industry watchers in China also suggest that Tesla received about 35,000 orders for the Model Y L on its first day of release.

Market backdrop

The timing of the Model Y L’s release comes as Tesla faces headwinds in China’s competitive SUV segment. Between January and July, Model Y retail sales in the country reached 202,257 units, a 17.15 percent decline compared to the same period last year, according to data cited by CNEVPost. It should be noted, however, that a good portion of this decline was due to the retooling of Tesla’s factories to make way for the new Model Y.

Despite the slowdown, the Model Y remains one of Tesla’s strongest performers globally. By introducing a higher-range, six-seat option, Tesla appears to be positioning the Model Y L as a way to boost demand and appeal to new buyers in a market that was previously only accessible to the much more expensive Model X.

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Tesla Model Y L gets disappointingly far production date in the United States

Fans of the extended wheelbase six-seater in the United States are in for a long wait.

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Credit: @TeslaNewswire/X

The Tesla Model Y L is making a lot of waves in the electric vehicle community, but fans of the extended wheelbase six-seater in the United States are in for a long wait.

This was, at least, according to Tesla CEO Elon Musk, who provided a disappointingly long timeline for the Model Y L’s production in the United States.

The Model Y L

The Model Y L has received near universal acclaim from electric vehicle enthusiasts and auto reviewers in China alike. Priced at just RMB 339,000 ($47,180) and fitted with a spacious and comfortable cabin, the Model Y L seemed destined to become a segment killer. And since the vehicle is also produced in Tesla’s existing Model Y lines, it seemed like the vehicle would be released worldwide soon. 

It was then no surprise that many Tesla community members were keen on asking if the Model Y L will be released in the United States anytime soon. Others also wondered why CEO Elon Musk was very quiet about the vehicle despite all the buzz it was generating. Eventually, Musk did share an update about the Model Y L, but it was not what many expected.

Elon Musk’s update

Amidst the conversations on X about the Model Y L, longtime FSD tester Whole Mars Catalog noted that Elon Musk would not be saying anything about the vehicle until its international release, likely because he would like to avoid an Osbourne Effect on the standard Model Y. Tesla’s sales today are still highly dependent on the standard Model Y, after all, as it is the company’s best-selling vehicle.

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Musk responded to the FSD tester, stating that the Model Y L will not start production in the United States until the end of 2026. He also noted that the vehicle might not even make it in America at all, considering Tesla’s focus on self-driving. “This variant of the Model Y doesn’t start production in the US until the end of next year. Might not ever, given the advent of self-driving in America,” Musk wrote in his post.

Musk’s post was received with much disappointment from many X users, some of whom joked that the CEO was risking alienating families with three kids with his comments. The Model Y L, after all, is a legitimate family car that can comfortably seat six, and it seemed like a vehicle that Musk would prioritize considering his stance on people having bigger families. Of course, the CEO might still just be preventing an Osbourne Effect with his comments, but it’s difficult to deny that a 2026 U.S. production date for the Model Y L is still disappointing.

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Tesla’s Elon Musk considers insane Cybertruck mod: ‘Maybe we should make this’

The Cybertruck won’t do what the video shows (at least not in our lifetime), but a very entry-level version of it could be developed.

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Credit: Cybertruck | X

Tesla CEO Elon Musk has teased what could potentially be the company’s next big project, and while it is likely many, many years away, it shows the company truly has its sights set on the craziest things the world has seen.

Musk shared a video created by Grok Imagine, the AI tool that is able to take images and turn them into videos, showing a Cybertruck flying above the clouds and buildings of what appears to be a very futuristic city.

There are also massive robots roaming around in the video, so it is obviously an illustration of what life could look like in several generations.

However, Musk, who does not shy away from some really optimistic projects and goals, shared the video on X and said, “Maybe Tesla should make this.”

What is depicted in the video is not what we’d see Tesla create anytime soon. However, the company could potentially engineer something to make the Cybertruck hover, as it plans to do with the Roadster.

Of course, this is likely a huge “if” considering the current state of the car industry. Vehicles are becoming more advanced with every passing day as companies like Tesla, Waymo, and others are working to sort out things like autonomous and driverless travel.

Tesla has been working on somewhat of a similar idea with the Roadster, a vehicle that has been delayed on several occasions because of Musk’s spectacular imagination. Earlier this year, Tesla’s Chief Designer, Franz von Holzhausen, revealed Musk wanted to push the limits of that vehicle even more.

The new Tesla Roadster will be able to fly: Elon Musk

It seems it could be on the way soon, considering Tesla has teased an “epic” demo for the car, which could come before the end of the year.

Tesla has been working to make the Roadster hover, using SpaceX cold gas thrusters. It will also utilize these for what could be an incredibly fast 1.1-second 0-60 MPH acceleration rate that has been teased countless times.

This project that Musk is teasing with the Cybertruck is likely one that we will not see in our lifetimes. However, this is just one example of the outlandish ideas Musk continues to tease for Tesla in the future.

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