Tesla enters into agreement with a Chinese bank for $565 million loan

CyberTech · May 9, 2020

According to a regulatory filing on Friday, Tesla has secured a $565 million loan for its Shanghai plant, which will be used for "continued expansion of production at Gigafactory Shanghai," the automaker said. The loan is being provided by the Industrial and Commercial Bank of China, and can only be used for expenditures pertaining to production at the Shanghai plant.

The Shanghai plant is Tesla's first manufacturing site outside the U.S. and was built as part of the company's vision to be a global carmaker. It also helps the firm circumvent higher import tariffs, which are imposed on cars manufactured in the U.S. Last week, production at the Shanghai plant was halted, with the company noting:

"Tesla Shanghai is adjusting to normal production due to test run(s) and maintenance of production lines that were carried out during the recent holidays. All work is being executed according to plan."

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Tesla had also been planning to resume operations at its Fremont factory on Friday; however, local county health officials stated that the plant doesn't meet the criteria for reopening and must remain closed.

CyberTech · May 9, 2020

Elon Musk has been frustrated that Tesla’s Fremont factory has remained shut down due to Alameda County’s lockdown order, and that anger has apparently reached the boiling point. Musk has claimed that he’ll move Tesla’s headquarters to Nevada or Texas “immediately” as a result of Alameda County’s decision to keep the Fremont factory shut through May. He also threatened to pull all manufacturing from Fremont “depending on how Tesla is treated in the future.”

On top of this, Musk said Tesla would sue the county for allegedly defying “the Governor, the President, our Constitutional freedoms & just plain common sense.”