In December 2019, Tesla secured a $ 1.4 billion loan from Chinese banks for Giga Shanghai. The five-year loan was partially used to renew previous debts. The rest of the money would go to Giga Shanghai and Tesla China operations. The interest rate was set at 90% of China’s benchmark one-year interest rate.
And now it looks like Tesla has paid off the loan in full, thanks to the documents Twitter user “JPR007” retrieved. He pointed to Tesla’s second quarter 2021 record, which no longer shows the $ 1.4 billion loan or part of it – removing the post altogether. It also means that all restrictions on Tesla associated with these loans have ended.
This $ 1.4 billion loan agreement with China was announced at the end of December 2019
– it has been used and fully refunded within 16 months
– and it was repaid by the Shanghai company from internally generated funds even as construction and expansion of the plant continued https://t.co/UKJEr4dDsa
– JPR007 (@ jpr007) October 4, 2021
In his discussion thread, he explained that China’s loan facility had a balance of $ 614 million as of March 31, 2021. As of December 31, 2020, the balance was $ 616 million. Based on its findings, it appears Tesla paid off the $ 1.4 billion loan announced in 2019 in full in 16 months.
“And it was repaid by the Shanghai company from internally generated funds even during construction and expansion of the plant.”
You can read the full thread of JPR007 here. It wouldn’t be the first time Tesla has paid off debts earlier. In 2010, Tesla received a loan from the US Department of Energy. The amount was $ 465 million. He was paid 9 years earlier. Even today, many still criticize Tesla for simply taking the loan while not realizing or acknowledging the fact that Tesla paid off that loan years ago when Ford apparently never paid off its loan from same program. CleanTechnicaZach Shahan writes: âFord never paid off his loan. Nissan repaid its loan in 2017. Tesla repaid its loan in 2013, 9 years in advance. Fisker defaulted and went bankrupt.
âFord’s loan was $ 5.937 billion. Nissan’s was $ 1.448 billion. Tesla was $ 0.465 billion. Fisker was $ 0.529 billion. (Note also that the US federal government spent $ 50.35 billion to bail out GM at that time, and $ 17.6 billion to bail out Fiat-Chrysler. “
Tesla’s story certainly shows us one thing: it is good at paying off loans.
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