Technology News on December 27, according to foreign media reports, a regulatory document submitted by the US electric vehicle manufacturer Tesla on Thursday showed that the company has reached 9 billion yuan (1.29 billion dollars) with a number of Chinese banks USD) secured agreement on term loan arrangements.
Tesla also said that the company has also signed an unsecured revolving loan arrangement agreement of up to 2.25 billion yuan, adding that both loans will be used for its Shanghai automobile plant.
Regulatory documents show that China Construction Bank, Agricultural Bank of China, Shanghai Pudong Development Bank and Industrial and Commercial Bank of China have all been listed as lenders. In addition to the construction and production expenses of the Shanghai plant, the loan may also be used to repay a 3.5 billion yuan loan due on March 4 next year.
According to Tesla’s filings with the US Securities and Exchange Commission (SEC), earlier this year, Chinese banks had provided Tesla with a loan of up to 3.5 billion yuan for a period of 12 months, with an agreement of Repayment on the 4th.
Earlier sources said that the interest rate of the new loan will be the same as the 3.5 billion yuan loan rate, which is 90% of the one-year interest rate announced by the central bank. This is the interest rate offered by Chinese banks to the best customers.
The Shanghai plant is Tesla’s first car manufacturing base outside the United States, and the core of its strategy to boost sales and avoid higher import tariffs in China, the world’s largest auto market.
A person familiar with the matter disclosed a few days ago that Tesla and a number of Chinese banks have reached an agreement to provide a five-year loan arrangement of 10 billion yuan for Tesla’s Shanghai Automotive Plant.
Tesla’s Shanghai plant broke ground in January this year, and production of cars has started. The plant aims to produce at least 1,000 Model 3 cars per week by the end of this year. The Shanghai plant is Tesla’s first car production base outside the United States, and the key to boosting sales in China, the world’s largest auto market. The Shanghai government also supports Tesla’s project, which will be China’s first wholly foreign-owned car factory, reflecting the government’s shift to an open auto market.