Tesla Gets $1.6B Loan From Chinese Banks For Shanghai Gigafactory

Tesla Inc. TSLA has secured $1.6 billion in loans from a host of Chinese banks for its Shanghai "gigafactory," the company's filing with the Securities and Exchange Commission on Thursday shows.

What Happened

The electric vehicle maker said that it reached an agreement with the local lenders on December 18 for a term loan of $1.28 billion secured with the manufacturing facility, and an additional unsecured revolving loan of $321.4 million, both of which can only be used in relation to the Shanghai gigafactory.

The lenders include China Construction Bank Corporation, Agricultural Bank of China, Shanghai Pudong Development Bank Co. Ltd., and Industrial and Commercial Bank of China Ltd., according to the filing.

The Elon Musk-led company said that it already used some of the proceeds from the loan to clear an older bridge loan of about $500 million on December 20.

Earlier in October, Tesla started accepting orders for its first China-made car, the Model 3, to be manufactured at the under-construction Shanghai facility.

Price Action

Tesla's shares closed 1.34% higher at $430.94 on Thursday.