Tesla investors sue Musk for his 'misstatements' on Twitter

Adjust Comment Print

Tesla's China borrowing follows its biggest ever debt payment recently.

Tesla said on Thursday that it signed an agreement with Chinese banks for a loan of up to $521 million to build its first overseas Gigafactory in Shanghai.

In a 2018 tweet, Musk had talked about having secured a funding for a plan to make Tesla private, and then in February 2019 he had tweeted about Tesla possibly producing half a million vehicles this year alone, both of which proved to be "misstatements" when Tesla remained public and also fell short of producing the estimated count.

According to a filing by Tesla, as much as $520M in loans have been committed by Chinese banks.

Tesla's China Gigafactory in 210-acre east of Shanghai will ramp up production of the Model 3 sedan for China market with 10,000 vehicles a week.

The electric-car company has said the Gigafactory will cost around $2 billion, and could help the company buffer against the ongoing trade war between the U.S. and China.

Unai Emery says Mkhitaryan "played well" against Rennes
I look at that squad now and I see players who are smiling, who are happy to play for the club and play for him. Emery is hopeful his players will not be negatively affected by having to toil for so long with only 10 men.

Premier League join UEFA FIFA Football Association in investigating Manchester City
Once again, however, they did not panic and pushed any pressure their toils might have caused back in the direction of Merseyside. Having claimed the first goal, Raheem Sterling only took another 13 minutes to complete his hat-trick and the contest was over.

US job creation screeches to a halt in February
On a more positive note, the proportion of part-time workers who'd prefer full-time jobs fell sharply last month. January's job growth was revised up to 311,000 from 304,000 and December was revised up to 227,000 from 220,000.

Ground-breaking work on the Shanghai gigafactory started in January and Mr Musk has said he wants the plant to begin production.

In the broader slowdown, battery-powered autos had been an exception.

Nio has shelved plans to build a Shanghai factory given the uncertainties in China's EV market this year, and plans to continue making its cars via an original equipment manufacturer.

Tesla has said the Gigafactory will cost around $2 billion, and could help the company buffer against the ongoing trade war between the USA and China. Tesla said it raised $521million from Chinese banks as a term loan for raising the local factory.

Keeping prices in check will also help Tesla fend off competition from a swathe of domestic electric vehicle startups such as Nio Inc, Byton and XPeng Motors. In its filing, Tesla said it had amended its asset-backed lending credit agreement with a syndicate of banks, increasing revolving commitments by 500 million to a total of 2.425 billion US dollars, while extending the maturity date of the agreement by three years.

Comments