Tesla Secures More Than $500 Million For Gigafactory 3
Banks in China are ready to help finance the Gigafactory 3
The loans come from four banks and will mature in March 2020.
- China Construction Bank Corp.
- Agricultural Bank of China Ltd.
- Industrial & Commercial Bank of China Ltd.
- Shanghai Pudong Development Bank Co.
According to Bloomberg, “Tesla also amended a separate asset-backed credit agreement, increasing how much it can borrow by as much as $700 million.”.
It’s probably not the last round to complete the factory, as expected total investment is to be about $2 billion.
The facility is set to produce 3,000 Model 3 per week at some point in the future.
Bloomberg notes also that Tesla just paid $920 million in convertible bonds, which matured on March 1:
“The fresh borrowing follows Tesla’s largest-ever debt payment last week. Settling the $920 million convertible bond that matured March 1 taxed the company’s balance sheet, which had about $3.7 billion in cash and equivalents at year-end.”
Tesla Gigafactory 3 facts:
- location: Shanghai, China
- wholly-owned subsidiary (not joint venture)
- construction was started in January 2019
- initial construction should be completed by the end of summer
- production of cars should start in second-half of 2019 (volume production from 2020)
- expected total investment: about $2 billion
- purpose: production of affordable versions of Model 3/Model Y for greater China region (higher cost versions of 3/Y and all S/X to be produced in the U.S.)
- battery packs will be assembled using lithium-ion cells from various suppliers, including Panasonic
- expected volume: 500,000 per year