Tesla gets $708m in loans for first factory in China

GettyImages-Tesla China

GettyImages-Tesla China

Tesla also amended a separate asset-backed credit agreement, increasing how much it can borrow by as much as US$700 million.

It earned USD720 million in revenue, with more than two thirds coming in the final quarter when it earned a meager 0.4 percent profit margin.

"Aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year", Musk had tweeted, adding that "Shanghai Giga production of Model 3/Y will serve greater China region".

Their new lawsuit, filed in Delaware Chancery Court, seeks to permanently block Musk's "unchecked use of Twitter to make inaccurate statements about the company", lawyers for one of the investors, the Laborers' District Council and Contractors' Pension Fund of OH, said in a statement.

The fresh borrowing follows Tesla's largest-ever debt payment last week. It settled the $920 million convertible bond that matured on March 1.

"Another reason for terminating the Shanghai factory plan is that the Chinese government this year introduced some new policies to encourage vehicle manufacturers and research and development institutions to further develop vehicles through cooperation", Xie said. Guests look at a Tesla Model 3 during a ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019.

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Tesla can now do so by borrowing at favourable rates.

According to a filing by Tesla, as much as $520M in loans have been committed by Chinese banks.

An average 18 percent decline in retail sales was reported for sedans, sport utility vehicles, multi-purpose vehicles, and minivans in February, according to the data from the China Passenger Car Association.

The funding, announced on Thursday, is an important boost for the California-based firm, which has been in negotiations with Beijing for years over building the plant in the world's biggest electric auto market.

Local manufacturing also will help the company sidestep any re-escalation of trade tensions between the United States and China.

The pact also permits the company to obtain up to US$200 million in additional commitments, and extend the term of most of the total commitments to 2023.

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