Tesla announced that it has signed several agreements with Chinese banks for loan of up to $520 million USD to build its first overseas Gigafactory in Shanghai. Construction of the factory began in January and CEO Elon Musk said the factor would be ready as soon as this summer.
|Tesla Gigafactory #3 – Shanghai, China|
Tesla has said the Gigafactory will cost around $2 billion, and could help the company buffer against the ongoing trade war between the US and China. Musk previously said the Shanghai factory would produce Model 3 sedans and its upcoming Model Y SUV for the Chinese market. Based upon the Shanghai Gigafactory beginning operations this summer, Musk said that the Tesla Model 3s could start rolling off of its assembly line by the end of the year.
|The Tesla Model 3|
Tesla has two Gigafactories in the United States – in Nevada deserts and in Buffalo, New York. The new factory in Shanghai would double the size of Tesla's global manufacturing capabilities and will be the first auto plant in China that's entirely owned by a foreign company.
Tesla’s Nevada Gigafactory
Tesla’s Chinese loans were declared in a regulatory filing, which also said the company amended a separate asset-backed credit agreement which widens how much Tesla can borrow by up to $700 million. According to media reports, Tesla and its financing partners have extended the maturity date of some of its commitments until 2023.