Tesla Inc. CEO Elon Musk announced that the company halved the RAM capacity for its upcoming AI5 chip to 72GB of LP5 memory. This strategic reduction, alongside a one-third cut for the subsequent AI6 chip, is described as the only way to secure sufficient volume for Optimus humanoid robot production.

Musk stated on social media that these adjustments greatly reduce costs. He argued that the cuts would have a negligible effect on Optimus performance because memory bandwidth acts as a bigger limiting factor than total memory storage in real-time processing tasks. This clarification suggests that increasing raw capacity without corresponding bandwidth improvements yields diminishing returns.

Micron highlights memory demand gap

The announcement follows comments from Micron Technology Inc. CEO Sanjay Mehrotra during its fiscal fourth-quarter earnings call. Mehrotra indicated that humanoid robots are expected to require more than 200GB of memory and multiple terabytes of storage per unit, similar to autonomous vehicles. He noted that physical AI could become a significant driver of memory demand by the end of the decade, with several customers already sampling next-generation products.

An X user highlighted the scale of this potential demand by calculating that 10 billion robots at 200GB each would require 2 trillion gigabytes of RAM. This figure far exceeds the roughly 45 billion gigabytes of DRAM produced globally each year, underscoring the supply constraints Tesla aims to navigate through specification cuts.

Production targets and supplier audits

Tesla has reportedly placed its first large-scale component order for approximately 5,000 Optimus units. The company is also auditing Chinese suppliers ahead of production. The long-term goal is to build 1 million Optimus units annually.

On Thursday, Tesla shares closed 0.2% lower at $354.11. Benzinga Edge rankings indicate the stock has a Momentum score in the 13th percentile and a Growth score in the 41st percentile.

Tesla Inc. (NASDAQ: TSLA) entered into three new credit agreements on September 29, 2026, securing $30 billion in total senior unsecured facilities. The move replaces an existing $5 billion revolving credit agreement, significantly expanding the company's available liquidity headroom to support aggressive capital expenditure.

The new structure comprises a $20 billion three-year delayed draw term loan facility, an $8 billion five-year revolving facility, and a $2 billion 364-day revolving credit facility. Citibank, N.A. serves as the administrative agent for the term loan, while Wells Fargo Bank, National Association acts as the administrative agent for both revolving facilities. Tesla does not currently plan to draw on these facilities in 2026.

Funding AI and autonomous vehicle initiatives

The financing arrives as Tesla accelerates investments in artificial intelligence and scales up production of Cybercab robotaxis and Optimus robots. The company is investing heavily in capital expenditure, expecting more than $25 billion this year. CEO Elon Musk described the buildout in July as "probably the fastest industrial scale-up since World War II in America," noting that Tesla is prioritizing speed over capital efficiency to accelerate projects.

R&D and pre-production ramp spending are focused on the Cybercab, Optimus robot, Tesla Semi, and other AI initiatives. Additionally, Musk announced at a Washington event that Space Exploration Technologies Corp. (NASDAQ: SPCX) and Tesla aim to jointly produce 200 gigawatts of solar power per year.

Facility structures and maturities

The delayed draw term loan allows Tesla to draw funds up to ten times within 18 months of closing. Undrawn commitments automatically reduce to $10 billion on the first anniversary and to $5 billion 15 months after closing, with remaining commitments terminating at the 18-month mark. Loans under this facility mature on September 29, 2029.

The five-year revolving facility permits borrowings in U.S. dollars, pounds sterling, or euros and supports letters of credit up to $500 million. It terminates on September 29, 2031, with options for two one-year extensions. The 364-day facility, denominated solely in U.S. dollars, matures on September 28, 2027, subject to a potential one-year extension via a term-out option.

Covenants and termination of prior debt

Tesla is required to maintain at least $5 billion of consolidated liquidity under the new agreements. Pricing for U.S. dollar borrowings is based on Term SOFR or an alternate base rate plus an applicable margin tied to Tesla’s senior unsecured long-term indebtedness rating. Commitment fees apply to unused revolving commitments, while ticking fees apply to undrawn term loan commitments.

Concurrently, Tesla terminated its existing revolving credit agreement dated January 20, 2023, which had aggregate commitments of $5 billion and was set to mature on January 20, 2028. No borrowings were outstanding under the terminated agreement, and no early termination penalties were incurred.

What the numbers show

The aggregate capacity of the new revolving facilities stands at $10 billion, double the capacity of the terminated $5 billion agreement. Furthermore, the inclusion of an accordion feature allows Tesla to increase total revolving commitments by up to $4 billion, potentially raising the combined revolving capacity to $14 billion. This expansion occurs alongside a massive $20 billion term loan, indicating a substantial strengthening of the balance sheet's borrowing power without immediate cash outflows, as no loans were outstanding as of the closing date.