Systems and methods are provided for feeding thread at a knitting machine. One embodiment is a thread feeding device which includes a spool that supplies thread to a knitting device through a thread path and a motor that drives the spool. The device and further includes a mobile guide in the thread path that changes position due to changes in thread tension as the knitting device draws thread through the mobile guide. The thread feeding device also includes a sensor that measures a change in position of the mobile guide, and a controller that determines an amount of tension applied to the thread by the knitting device based on the change in position, and adjusts a speed of a motor that drives the spool based on the amount of tension.