Banks in China are ready to help finance the Gigafactory 3

According to the latest news, Tesla just secured financing for the Gigafactory 3 in Shanghai from Chinese banks. The bank loans are reportedly for $521 million.

The loans come from four banks and will mature in March 2020.

China Construction Bank Corp.

Agricultural Bank of China Ltd.

Industrial & Commercial Bank of China Ltd.

Shanghai Pudong Development Bank Co.

According to Bloomberg, "Tesla also amended a separate asset-backed credit agreement, increasing how much it can borrow by as much as $700 million.".

It's probably not the last round to complete the factory, as expected total investment is to be about $2 billion.

The facility is set to produce 3,000 Model 3 per week at some point in the future.

Bloomberg notes also that Tesla just paid $920 million in convertible bonds, which matured on March 1:

"The fresh borrowing follows Tesla’s largest-ever debt payment last week. Settling the $920 million convertible bond that matured March 1 taxed the company’s balance sheet, which had about $3.7 billion in cash and equivalents at year-end."

Tesla Gigafactory 3 facts:

location: Shanghai, China

wholly-owned subsidiary (not joint venture)

construction was started in January 2019

initial construction should be completed by the end of summer

production of cars should start in second-half of 2019 (volume production from 2020)

expected total investment: about $2 billion

purpose: production of affordable versions of Model 3/Model Y for greater China region (higher cost versions of 3/Y and all S/X to be produced in the U.S.)

battery packs will be assembled using lithium-ion cells from various suppliers, including Panasonic

expected volume: 500,000 per year

Source: Bloomberg