Musk confirms that Tesla has paid off its $1.4 billion China Gigafactory loan early.

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Musk confirms that Tesla has paid off its $1.4 billion China Gigafactory loan early.

On the list of US automakers that haven’t filed for bankruptcy, Tesla is joined by Ford.

Tesla has a reputation for paying off loans ahead of schedule, so it’s no surprise that it’s already paid off a $1.4 billion loan for its Gigafactory in Shanghai. Elon Musk, the CEO of Tesla, confirmed the information on Twitter.

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Tesla fan and investor JPR007 (@jpr007) posted documents on Twitter revealing that Tesla paid off the entire $1.4 billion debt 16 months early, according to Teslarati. Tesla took out the loan in December 2019, and as of the company’s Q2 2021 financial report, it appeared to be paid off. However, musk responded to a CleanTechnica article about the payoff by saying:

The original loan was supposed to be paid off in five years (60 months). However, according to reports, Tesla paid off the loan entirely with profits from the Shanghai Gigafactory. According to Reuters, “China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, and Shanghai Pudong Development Bank” were the banks that provided the loan.

According to Teslarati, Tesla paid off a large loan from the US Department of Energy back in 2013. The incredible part is that Tesla was able to pay it off nine years ahead of schedule. Meanwhile, most automakers are sitting on large loans with high-interest rates, which they are slowly repaying according to the terms. Keep in mind that Tesla is the only US automaker that hasn’t filed for bankruptcy, along with Ford.

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Being on good terms with lenders is critical as Tesla works to expand its global footprint. Not to mention that the electric vehicle manufacturer in the United States has posted eight consecutive profitable quarters.

Source: Teslarati