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.

FURTHER READING: Tesla stocks hit record high

FURTHER READING: Ford takes on Tesla in battle for electric supremacy with Mustang SUV

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image