Tesla announced that closed two deals with Deutsche bank worth in total $500, that it will be used for increasing its capital expenditure. Automaker is preparing for expansion of production lines in Freemont and Nevada where facility for battery production is placed, all before introducing long time expected Model 3, scheduled for 2017.
The first deal signed Tesla Motors Inc. its subsidiary Tesla Motors Netherlands B.V. and Deutsche Bank AG New York Branch. The Credit Agreement Amendment increased the revolving commitments under the Credit Agreement by $200.0 million, thereby increasing the total revolving commitments from $1.0 billion to $1.2 billion, and amended the Credit Agreement to permit the Borrowers to obtain up to $50.0 million of additional commitments pursuant to the terms of the Credit Agreement, the company wrote in a SEC filing. That means that Tesla can borrow additional $200 million with potentially $50 million more that can be used for its operations and expenditures.
The second deal was between ‘Tesla Finance’, Tesla’s financial unit under which the automaker operates its leasing program, and Deutsche Bank. Among other things, the Agreement increased the maximum facility limit under the Warehouse Agreement by $300.0 million, thereby increasing the total facility limit from $300.0 million to $600.0 million.
China opens the doors for Tesla and other foreign automakers to produce electric vehicles in the country
While Tesla is planning to expand production in U.S. facilities from China is coming news that this county is proposing to relax its strong protectionism laws in an attempt to accelerate electric vehicle production. China is now proposing more flexible laws for electric vehicles production, in order to attract more foreign investments. China is fighting with the air pollution problems, and new rules will bring Tesla and other automakers to the country, since they are openly longing for opening the EV production here.
The National Development and Reform Commission and the Ministry of Commerce released the new law last week. Public debate will last for about one more month. It is expected that the new rules could go into effect soon after this process.