Chinese lend Tesla $1.29bn for Shanghai factory
Loan can also be used to repay debt due in March 2020
Bengaluru — Tesla has entered into agreements with lenders in China for a secured term loan facility of up to 9-billion yuan, or $1.29bn, according to a regulatory filing on Thursday.
The electric-car maker said it has also signed agreements for an unsecured revolving loan of up to 2.25-billion yuan, adding that both the loans will be used for its Shanghai car plant.
China Construction Bank; Agricultural Bank of China; Shanghai Pudong Development Bank; and Industrial and Commercial Bank of China are the lenders, according to the filing.
Besides construction and production at the Shanghai factory, the loan may also be used to repay the 3.5-billion yuan debt due to be repaid on March 4 2020.
The factory, which is Tesla’s first car manufacturing site outside the US, is the centrepiece of its ambitions to boost sales in the world’s biggest vehicle market and avoid higher import tariffs imposed on US-made cars.
Reuters reported earlier this week that Tesla and a group of Chinese banks had agreed to a new 10-billion yuan, five-year loan facility for the Shanghai car plant, citing sources familiar with the matter.