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Investor's Corner

Tesla has paid off six loans worth over $1B in 2021

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Tesla has paid off six loans so far in 2021, equating to over $1 billion in debts that have been removed from the company’s financials. The automaker, which surged to a valuation of over $1 trillion yesterday, detailed the repayment of these loans in a 10-Q filing with the SEC.

Tesla’s total repayment of its loans in 2021 amounts to $1.087 billion, according to information the automaker released in the 10-Q. The company took loans from several entities to help fund the construction and development of several projects across the globe, including a massive $614 million loan from numerous Chinese banks to build Gigafactory Shanghai and a $321 million loan for Solar Asset-backed notes, both of which are repaid.

Solar Asset-backed Notes and Solar Loan-backed Notes

In October 2021, Tesla early repaid the substantial sum of these two loans, which total $374 million in total. The $321 million loan was early repaid and applied to the Solar Asset-backed Notes, while the $53 million loan was paid back early as well and applied to Solar Loan-backed Notes.

China Loan Agreements

In April 2021, Tesla fully repaid a massive $614 million in aggregate principal of its second term loan facility in connection with the construction of Gigafactory Shanghai. This applied to the “Fixed Asset Facility” and Tesla was it was terminated. This loan actually amounted to $1.4 billion in total when it was financed in December 2019. CEO Elon Musk said, “Tesla always pays its debts.”

Elon Musk confirms Tesla’s $1.4 billion loan for Giga Shanghai was paid off early

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Additionally, in June 2021 Tesla’s Working Capital Contract Loan Contract, which it entered in May 202, matured and was also terminated.

Solar Term Loan

In January 2021, Tesla fully repaid its matured Solar Term Loan, but did not give details on the amount.

Automotive Lease-backed Credit Facilities

In June 2021, Tesla fully repaid $32 million in aggregate principal of its Automotive Lease-backed Credit Facilities, which terminated one of the facilities, the company wrote.

Solar Revolving Credit Facility and other Loans

Tesla fully repaid a $67 million loan for Solar Revolving Credit in April 2021. The loan was terminated.

Remaining Debt

Tesla still does have some debt remaining, but some could be paid off with the massive $4.3 billion it just profited off of an order for 100,000 Model 3s from Hertz. According to the 10-Q, Tesla has $1.207 billion in debt in the current term, with $5.439 billion in the long term.

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Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Investor's Corner

X clarifies xAI prediction market rumors, hints at future plans

Musk’s AI firm denied rumors of a Kalshi deal but left the door open. Prediction markets + AI could change how we forecast everything.

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Credit: xAI

X dismissed rumors of xAI entering prediction market partnerships. In a recent X post, Elon Musk’s company clarified that xAI had not yet entered formal partnerships in the prediction market.

However, xAI clarification hinted at future exploration in the prediction market, aligning with X’s goal to become an “everything app.” The speculation underscores AI’s potential to reshape predictive analytics.

“Recent speculation about xAI’s involvement in the prediction market space has been circulating. While we’re enthusiastic about the potential of this industry and engaged in various discussions, no formal partnerships have been confirmed to date. Stay tuned!” noted the X team.

X’s statement followed a Tuesday post by Kalshi, hinting at a collaboration with xAI, which was deleted hours later. Kalshi suggested that xAI could leverage AI to analyze X’s news and social media data, enhancing betting decisions on political and economic events.

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Bloomberg reported Kalshi aims to use xAI for tailored insights, enabling users to wager on outcomes like Federal Reserve rate changes or elections through derivative contracts.

“There’s deep alignment between prediction markets, social media, and AI. Prediction markets capture what people know — AI scales what people can know,” said Kalshi CEO Tarek Mansour. “This is just the beginning of a long collaboration to unlock the full potential of prediction markets.”

The prediction market industry fits X’s vision to evolve into a comprehensive platform, capitalizing on its trend and news leader role. While xAI’s denial quashes immediate partnership claims, its openness to discussions signals potential interest in prediction markets, where AI could amplify real-time insights.

xAI’s cautious stance reflects its focus on strategic AI development while navigating speculative buzz. As X pursues its “everything app” ambition, prediction markets could enhance its ecosystem, blending social media’s pulse with AI-driven analytics. With no partnerships confirmed, xAI’s future moves may yet redefine how users engage with event-based predictions, positioning it at the forefront of AI innovation.

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Investor's Corner

Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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