Tesla's China factory, the company's first car manufacturing facility outside of the United States, is central to its ambition to increase sales in the world's largest auto market. With the support of the local government, Tesla received loans for construction. To date, the company has fully repaid its $614 million loan for Shanghai Gigafactory.
With a stake in Giga Shanghai, Tesla sought to quickly build a factory to start selling cars in the world's largest car market as quickly as possible, and for this, the company took out a loan. The Shanghai government has backed the project, which is China's first wholly foreign-owned car factory.
In a Form 10-Q filed with the Securities and Exchange Commission (SEC) on April 27, Tesla stated that it had fully repaid a $614 million loan intake for the construction of the Giga Shanghai Gigafactory.
"In April 2021, we fully repaid the $614 million in aggregate principal of our secured term loan facility in connection with the construction of Gigafactory Shanghai (the“ Fixed Asset Facility ”) and the facility was terminated."
After the termination of the contract, the unused $758 million under the fixed asset credit included in the company’s debt and financial lease tables will no longer be usable.
"After the termination, the $758 million of unused commitment under the Fixed Asset Facility included in the debt and finance lease table as of March 31, 2021 above was no longer available."
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.