Tesla Secures Loan for Expanding Shanghai Gigafactory

published: 2020-01-09 0:30 | editor: | category: News

Tesla China has officially secured a loan of up to 10 billion RMB for five years from a banking consortium consisting of China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China and Shanghai Pudong Development Bank; the loan will mainly be used for the expansion of the company's China operation and its Shanghai Gigafactory; it will also be used to repay its previous loan of 3.5 billion RMB.

According to its contract with the Shanghai City Government, the Shanghai Gigafactory will have to pay an annual tax of 2.23 billion RMB (US$323 million) from the end of 2023; otherwise, the city government will take back the leased plot of land for the facility. The contract also calls for Tesla to invest 14 billion RMB in the Shanghai Gigactory within five years, which makes it the largest foreign investment ever.

The Tesla Shanghai Gigafactory had started its trial run in October and is scheduled to begin mass production at the end of 2019.     

Tesla has officially begun to accept orders for the Tesla Model 3 cars which will be made by the Shanghai Gigafactory, on Oct. 25; The Tesla Model 3 cars feature a price tag of 355,800 RMB, and will be deliveredby Jan. 25, 2020. In November, the Ministry of Industry and Information Technology officially issued a green light for the mass production of the cars by the Shanghai Gigafactory. The initial output of the cars is expected to hit 3,000 on a weekly basis.

Source: ifengtechdigi

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