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Electronics Production |
Tesla strikes deal with Chinese lenders for Gigafactory
On March 1, 2019, a subsidiary of Tesla entered into an agreement with a syndicate of lenders in China for an unsecured 12-month term facility of up to RMB 3.5 billion (about USD 521 million), to be used in connection with our Gigafactory Shanghai.
The electric car manufacturer broke ground on its Chinese Gigafactory back in January and announced that volume production was scheduled for 2020.
In a SEC filing Tesla says that it has amended and restated its asset-backed lending credit agreement to increase the total lender commitments by USD 500.0 million to USD 2.425 billion, and also extended the maturity date from June 10, 2020 to July 1, 2023. The amendment also increased the letter of credit subfacility from USD 200.0 million to USD 400.0 million,
The Shanghai-based Gigafacotry is likely to help the company curb any uncertainties and minimise the impact from the current U.S.-China trade war, and a potentiall escalation of the situation.
