Tesla has a reputation for paying off loans early, so it comes as no surprise that it has already paid off a $1.4 billion loan related to its Gigafactory in Shanghai, China. The information was confirmed on Twitter by Tesla CEO Elon Musk.
According to Teslarati, Tesla fan and investor JPR007 (@jpr007) posted documents on Twitter revealing that Tesla paid off the full $1.4 billion a whopping 16 months early. Tesla took the loan back in December 2019, and it seemed to be paid off as of the company's Q2 2021 financial report. Musk replied to an article published by CleanTechnica about the payoff:
The original loan was to be paid off over the course of five years (60 months). Reportedly, Tesla paid off the loan in full, and it used profits from the Shanghai Gigafactory to do so. Based on a report from Reuters, the loan came from a number of banks, including "China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, and Shanghai Pudong Development Bank."
Teslarati reminds us that back in 2013, Tesla paid off a huge loan that had been issued by the US Department of Energy. The amazing part here is that Tesla paid it off nine years ahead of schedule. Meanwhile, most automakers are sitting on massive loans and paying plenty of interest as they slowly repay based on the terms. Keep in mind, Tesla is only joined by Ford on the list of US automakers who haven't officially filed bankruptcy.
As Tesla works to expand its global footprint, being on good terms with lenders is huge. Not to mention the fact that the US electric automaker has reported eight consecutive profitable quarters.