Tesla Shanghai Plant applies for a US$2 billion loan from Chinese banks
Feb 28, 2019| According to a Wall Street research report, Tesla (314.74, 16.88, 5.67%) is applying for a low-interest loan of about US$2 billion (about 13 billion yuan) from a Chinese bank to build its huge battery and automobile plant in Shanghai. .
Investment research firm JL Warren Capital wrote in a report last week that Shanghai Pudong Development Bank, Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China are expected to become loan providers for the Tesla Shanghai plant. .
Warren Capital is a New York-based investment research firm that specializes in Chinese companies and US companies with significant business contacts in China.
According to Warren, Tesla's new financing of about 500 million US dollars (about 3.3 billion yuan) will be used in the first phase of the construction of Shanghai's super factory, the total loan of this purpose is about 2 billion US dollars.
The interest rate for the first phase of financing may be 3.9%, which is lower than the benchmark interest rate of the Chinese central bank of 4.35%. This will help Tesla run the assembly line at the Shanghai plant to produce 250,000 low-profile Model 3 electric cars.
Tesla has not confirmed the details of these loans at the Shanghai plant, and a spokesperson for the company declined to comment.