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March 7, 2019, 6:55 p.m. EST

Tesla makes deal with Chinese lenders for Shanghai Gigafactory

$521 million investment for facility that hopes to start production later this year

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By Maria Armental


Bloomberg News
A banner stands in front of cranes at the site of the Tesla Inc. manufacturing facility in Shanghai, China, on Jan. 7.

Tesla Inc. reached an agreement with lenders in China to receive as much as a half-billion dollars to invest in its Shanghai factory currently under construction.

The electric-car maker said in a securities filing Thursday that a syndicate of lenders agreed to provide up to 3.5 billion yuan ($521 million) for construction and production expenses at its so-called Gigafactory Shanghai. Tesla’s lenders in the agreement are China Construction Bank Corp. /zigman2/quotes/208974133/delayed HK:939 +0.95%  , Agricultural Bank of China Ltd. /zigman2/quotes/200705246/delayed HK:1288 +0.94%  , Industrial and Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 +0.90%  , and Shanghai Pudong Development Bank Co. /zigman2/quotes/204296742/delayed CN:600000 +1.01%  .

Tesla /zigman2/quotes/203558040/composite TSLA +2.74%   said it entered into the agreement for an unsecured 12-month term loan earlier this month.

Construction of what is to be the first foreign-owned car plant in China in China — and Tesla’s first massive Gigafactory outside of the U.S. — began in January. The plant, at a roughly 210-acre site east of downtown Shanghai, is crucial to the California company’s goal to scale up production in China. Tesla expects to begin production of the Model 3 sedan for the local market by the end of this year, targeting 10,000 vehicles a week, and mass production by next year.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/208974133/delayed
HK : Hong Kong
HK$ 6.37
+0.06 +0.95%
Volume: 234.52M
Dec. 11, 2019 4:08p
P/E Ratio
5.34
Dividend Yield
5.48%
Market Cap
HK$1577.57 billion
Rev. per Employee
HK$3.31M
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/zigman2/quotes/200705246/delayed
HK : Hong Kong
HK$ 3.23
+0.03 +0.94%
Volume: 67.79M
Dec. 11, 2019 4:08p
P/E Ratio
4.76
Dividend Yield
6.13%
Market Cap
HK$1119.94 billion
Rev. per Employee
HK$2.16M
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/zigman2/quotes/201401473/delayed
HK : Hong Kong
HK$ 5.63
+0.05 +0.90%
Volume: 175.77M
Dec. 11, 2019 4:08p
P/E Ratio
5.68
Dividend Yield
5.06%
Market Cap
HK$1988.75 billion
Rev. per Employee
HK$3.03M
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/zigman2/quotes/204296742/delayed
CN : China: Shanghai
¥ 11.98
+0.12 +1.01%
Volume: 33.41M
Dec. 11, 2019 3:00p
P/E Ratio
5.76
Dividend Yield
2.92%
Market Cap
¥348.12 billion
Rev. per Employee
¥5.94M
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/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 348.84
+9.31 +2.74%
Volume: 8.84M
Dec. 10, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$62.88 billion
Rev. per Employee
$439,627
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