Tesla Reportedly Borrowing $1.4B From Chinese Banks For Shanghai Factory

Tesla Inc TSLA is taking on a 10-billion-yuan ($1.4 billion) loan from Chinese banks for its Shanghai factory, Reuters reported Monday, citing sources familiar with the matter on Monday.

The banks have agreed on a new five-year loan facility for the automaker’s Shanghai plant, part of which will be used to roll over an existing loan.

The banks include the China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China and Shanghai Pudong Development Bank, Reuters said. 

The construction of the Shanghai plant, the company’s first factory outside the U.S., started in January 2019.

It is reported that the Chinese banks have already already offered Tesla a 12-month facility of up to 3.5 billion yuan, which is due to be repaid March 4, 2020, according to a Securities and Exchange Commission filing.

The new loan will be used to roll over the previous 3.5-billion-yuan debt, according to Reuters. 

Tesla shares were trading 2.04% higher at $413.87 in Monday's premarket session. The stock has a 52-week high of $413 and a 52-week low of $176.99

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Photo courtesy of Tesla.