Chinese banks back Tesla’s plans in China.
According to Reuters’ unofficial sources, Tesla and a group of China banks, have agreed a new 10 billion yuan ($1.4 billion), five-year loan facility.
The sources add that the new deal will allow Tesla to rollover an existing loan of 3.5 billion yuan (12-month by March 4, 2020) and use the remaining part on the Gigafactory 3 investment and operation in China.
“That new loan will be partially used to roll over the previous 3.5 billion yuan debt, according to the first source. The second source said the rest will be used on the factory and Tesla’s China operations.
The new loan’s interest rate will be pegged at 90% of China’s one-year benchmark interest rate, the same as the 3.5 billion yuan loan, the first source said. This is a rate that China banks offer to their best clients.”
The list of banks includes China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China and Shanghai Pudong Development Bank.
The latest news, if confirmed, would prove that Chinese businesses have high hopes about Tesla’s future in China.
Tesla is already producing Model 3 at the Gigafactory 3 and is expected to gradually increase sales from 1,000 per week (initially) to 3,000 per week, which would be one of the highest volumes in China.
Other great news for Tesla is a most recent all-time record of shares price above $420.
Source: Reuters