Tesla borrows $1.6bn to invest in Shanghai car plant
Loans will help Tesla make its mark on the world’s biggest car market
Tesla has borrowed up to 11.25 billion yuan ($1.6bn, £1.2 €1.4bn) to invest in its Shanghai car plant.
According to a regulatory filing, Telsa has entered into agreements with lenders in China for a secured term loan facility of up to 9 billion yuan. The electric car maker said it has also signed agreements for an unsecured revolving loan facility of up to 2.25 billion yuan.
The lenders are the China Construction Bank Corp, the Agricultural Bank of China, the Shanghai Pudong Development Bank and the Industrial and Commercial Bank of China.
It is likely that some of the money will be used to repay the 3.5 billion yuan debt, which is due on 4 March 4 2020.
The factory is Tesla’s first car manufacturing site outside the US and is proof of its ambitions to make its mark on the world’s biggest car market. Its move into China also means it will avoid higher import tariffs imposed on cars made in the US.
This is the second major cash injection in less than a week, as on 23 December Tesla and a group of Chinese banks agreed a new 10 billion yuan, five-year loan facility for the its Shanghai car plant.
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