Tesla Motors Receives $500 Million from Bank of China for Building Chinese Gigafactory

Tesla and Elon Musk

So the Bank of China stepped up. As TheStreet.com reports the following.

To begin, Electric carmaker Tesla Motors (TSLA – Get Report) said Thursday it signed an agreement with lenders. Those lenders are the Bank of China. So all at Bank of China for a 12-month credit loan. It’s up to 3.5 billion yuan. I mean or about $521 million. This is for the company’s Gigafactory in Shanghai. This gigafactory for Tesla Motors is therefore to build batteries for the Model S, 3, X and now Y vehicles.

So immediately, Tesla Inc broke ground on the factory.

Most interestingly and according to SEC documents, Tesla has until March 4, 2020 to pay up to the Bank of China!

According to Quartz: The factory is taking shape on a roughly 200-acre piece of land. For it is located in Shanghai’s southeastern Lingang suburb.

So a Shanghai official who heads the city’s economy and IT commission said last month that the factory will be completed in May. As well as a worker at the site with one of the contractors—Shanghai Baoye Group. For they both said construction is also going on around the clock.

Most noteworthy is Its surrounded by fences and walls. All because the factory isn’t open for visits yet.

In conclusion and according to the story from CleanTechica,

Recall that the goal is to have the factory in a ready state. All to start pilot production runs sometime in September, with volume production beginning in the 4th quarter.  All terms for the Bank of China!

“It looks like we’ll reach volume production at the end of this year with, let’s say, more than 1,000 cars a week, maybe 2,000 from Shanghai Giga at the end of this year. That’s what it looks like to be the case right now. If it’s not at the end, it will be shortly thereafter.” Elon Musk, Q1 2019 Tesla earnings call.

All so they can pay the Bank of China in time!

Finally for the entire story at TheStreet.com