Tesla corporation managed to take a new loan from Chinese banks.
Moreover, it is all in favor of building at least 1,000 Model 3 cars.
Tesla Corporation New Loan
The company is collaborating with a group of Chinese banks in order to get a new 10-billion-yuan loan for the company’s Shanghai car plant.
Moreover, this loan will roll over an existing loan and is a five-year-loan.
Furthermore, China Construction Bank (CCB), Agricultural Bank of China (AgBank)
Industrial and Commercial Bank of China (ICBC) and Shanghai Pudong Development Bank (SPDB) are among the five banks of the agreement.
They agreed to support Tesla financially in what they will do in their country and to boost the work a little bit.
In addition, earlier this year Tesla was offered another 12-month facility of 3.5 billion yuan that is due on March 2020.
Therefore, this new loan will be used to roll over the previous one as sources suggest.
Besides, some other sources suggested that the rest will be on the factory and Tesla’s china work.
Moreover, the new loan’s interest rate will be clinched at 90% of china’s one-year benchmark rate.
Thus, they say that is the best rate that they can offer for their VIPs.
The Benefits of that big loan
Tesla has already started producing Tesla’s Model 3 vehicles from its Shanghai plant.
However, the company and the other five banks did not respond to media’s requests for comment.
Moreover, this factory is Tesla’s first outside the united states and it will be their huge step towards better sales.
Furthermore, Elon Musk, Tesla’s CEO said that it will undoubtedly boost their sales in the world’s biggest auto market.
In addition, what the two country’s gain is avoiding higher tariffs on U.S.- made cars.
Besides, the Chinese government says it fully supports this huge project of Tesla’s.
They also said that it will be a great shift to the world’s car market as it is their first foreign-owned car plant.