For Tesla, financing is not a problem.

According to Reuters, Tesla has entered into an agreement with Industrial and Commercial Bank of China Limited for a working capital loan of up to 4 billion yuan (over $565 million).

The loan will be used solely for the expenditures related to production at the Tesla Gigafactory 3 in Shanghai.

The Industrial and Commercial Bank of China Limited is one of a few banks that participated also in the previous 10 billion yuan ($1.4 billion), five-year loan facility in December 2019.

Tesla is currently very busy in China, as the production of the Tesla Model 3 has to be increased to fulfill demand, as well as contribute to overall results, significantly affected by the COVID-19 lockdown in the U.S.

Separately, Tesla is expanding the plant to start production of the Tesla Model Y in China by the end of this year.

We believe that within a year, the Gigafactory 3 should have manufacturing capacity for more than 300,000 electric cars annually.

Tesla Gigafactory 3
Tesla Gigafactory 3
Source: Reuters