California’s Tesla secures $565 million in debts for Shanghai Gigafactory

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California’s Tesla secures $565 million in debts for Shanghai Gigafactory

Tesla Inc., the Palo Alto, CA-based e-vehicle industry leader of billionaire entrepreneur Elon Musk, had reached an accord with a Chinese lender for a fresh debt of up to $565.51 million or ¥4 billion aimed at improvising its Shanghai Gigafactory, a regulatory filing had revealed on Friday, the 8th of May 2020.

Nevertheless, under the terms of the deal, the agreed amount in capital loan from the Industrial and Commercial Bank of China Ltd., could only be used for expenses related to the American multinational electric vehicle manufacturer’s Shanghai Gigafactory, Friday’s (May 8th) regulatory filing said.

On top of that, latest report over securing a fresh financing for Tesla Inc.’s Shanghai factory came forth a day after media reports had revealed that the Tesla Model 3 had been the best-selling luxury car in the United States by far in the first quarter of 2020, while Tesla Inc.’s Model 3 accounted for roughly 21 per cent of the cars sold during the timeframe and its closest competitor had been the German carmaker Daimler AG’s Mercedes Benz holding roughly 15 per cent of market share.

Nonetheless, earlier last month the carmaker had told that it might have faced off heavier hurdles over the Q2 due to a prolonged shutdown, while the Californian carmaker’s latest move to secure funds for China venture could have buffered some of its losses in the United States, since China, the world’s largest automotive market, had reopened its economy following months of pandemic-driven lockdown, suggested analysts.