Banks of China Give Elon Musk $1.29 Billion for Shanghai Tesla Plant

| Updated
by Jeff Fawkes · 3 min read
Banks of China Give Elon Musk $1.29 Billion for Shanghai Tesla Plant
Photo: Shutterstock

A new Tesla car plant will appear in Shanghai, and Tesla may use the loan money to repay 3.5 billion yuan debt.

Tesla‘s products build a cyberpunk future many people were waiting since the 20-century classic books. A regulatory file posted on Thursday claims that big Chinese lenders work with Tesla corporation on financing the first Tesla plant construction in China. Situated outside of the U.S., the plant will serve the Asian market with the cars that are of high honor among Chinese folks.

By signing several deals, Tesla is trying to expand its manufacturing to the world’s largest automobile market. Chinese tech fans and wealthy people will surely want to buy Tesla’s new cybertruck, as well as the more classic models.

The Reuters news agency reported earlier this week that Tesla is signing major agreements with the banks of China. The inside sources claimed that the deals are worth 10 billion Chinese yuan. The loan is 9 billion and some of the funds will be used to pay debts. On 4 March 2020 Tesla will pay China approximately 3.5 billion yuan.

The placement of Tesla’s new plant in the heart of Asia will allow a huge cost cut. For instance, the company won’t have to pay import fees set by China in regards to the U.S. cars. In the documents, we see few names of the banks who backed Elon Musk’s ideas and initiative: Industrial and Commercial Bank of China, Shanghai Pudong Development Bank, Agricultural Bank of China and others.

Elon Musk Gives Young People Hope for Better Future

Over time, it became obvious that people standing behind the oil industry don’t want electric cars to exist. We’ve seen plenty of strange development in the past, with people inventing cars that work on water, sunflower oil or even horse poop.

It looks like, when you know the exact technology, you can make the cars to use anything as fuel. The big car manufacturing corporations like to buy such unusual patents and keep them in secret. The Earth is slowly becoming a battlefield with oil as the primary prize, however, we don’t need the oil to use Tesla cars.

They use electricity, a resource that’s much easier to produce than gas. And because Elon Musk is smart enough, he has connections in the U.S. government. Corporations from other countries will keep the distance until Tesla cars overtake the usual ones.

Worth noticing that, in one of the recent token giveaways, Binance exchange had put Tesla Cybertruck as the primary prize for one of the winning traders. It appears that, even if you don’t like Binance or crypto trading, it is beneficial to have a Binance account.

Altcoin News, Binance News, Cryptocurrency news, Editor's Choice, News
Jeff Fawkes
Author Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.

Related Articles