In December 2019, Tesla acquired more than $1.4 billion in its fund in the form of loans from various Chinese banks in order to construct its new Gigafactory in Shanghai. While the payback time was 5 years, Tesla repaid its loan in just 16 months.
A Tesla enthusiast @jpr007 showed documentation that Tesla officially cleared off its entire loan from the Chinese banks in 16 months. Musk later authenticated the story by stating, “Tesla always pays its debts.” in a response to an article in Clean Technica.
Tesla always pays its debts
— Elon Musk (@elonmusk) October 5, 2021
In July 2018, When Tesla set forth its plans to establish its Shanghai Gigafactory, the company took the loan from the various banks including the Agricultural Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Shanghai Pudong Development Bank according to the report from Reuters.
It is clearly conceivable that the entire loan has been repaid through the profits from the Shanghai Factory. When the plans of constructing the factory were initiated, it was first opened with the pre-orders of its Model 3 vehicles in the country. Tesla worked out to produce Model 3 vehicles at a less price than the imported models. Looking into the recent data the demand for Tesla in the Chinese market is springing up every day and Musk’s special focus on the country’s market extended the profits throughout.
This is not the first time for Tesla to repay the loan in advance. In 2013, Tesla repaid its huge loan issued by the US Department of Energy nine years earlier than the actual payment period. But many Automakers believe to be in a safe zone to their business are paying their interests slowly based on the bank terms. Anyway, Tesla is detaching the burden of Loans which helps the company prevailing every country without any fear of bankruptcy. Meanwhile, Only Telsa was joined by Ford who hasn’t officially filed bankruptcy on the list of US automakers.
It seems, around the ace competitors and startups, This EV period resembles the king’s war for the King of EV throne. Amusingly Tesla’s statement “Tesla always pays its debts.” resembles intentionally or coincidentally a Game of Thrones dialogue where Lannisters say” A Lannister Always pays its debts.” For the regular followers of EV news, This can be seen like “Game of EV Thrones.”