• 16 hours Low Prices Plague Beleaguered Lithium Miners
  • 1 day Is This The Big Biotech Bust?
  • 2 days Funding Is The Biggest Hurdle For Clean Energy
  • 2 days Walmart Reaches Out To Chilean Government For Protection
  • 3 days The Most Exciting Gold Find Of The Decade
  • 3 days Mining Boom Sparks Deforestation Concerns
  • 3 days The Cannabis Culling Has Wall Street Disappointed
  • 4 days Vigilante Offers $100,000 Bounty To Hack Banks
  • 4 days The Dairy Industry Is Dying
  • 5 days The Most Impressive Electric Vehicle Of The Year
  • 6 days Gold Miners Are Having A Stellar Second Half
  • 7 days How 3D Printing Is Turning Each And Every Industry On Its Head
  • 7 days Is The $3.5 Trillion Healthcare Industry About To Get Much More Transparent?
  • 7 days Gamblers Are Betting Big On Trump’s Impeachment
  • 8 days Even Banks Can't Answer Aramco's Trillion Dollar Question
  • 8 days Will Bezos Buy The Seattle Seahawks?
  • 9 days 6 Tech Trends Transforming The Travel Industry
  • 9 days Ousted Uber CEO Cashes Out $500 Million In Stock
  • 10 days Trump Prepares For Another Key Tariff Decision
  • 10 days The Free Money Bubble Is About To Burst
The Most Exciting Gold Find Of The Decade

The Most Exciting Gold Find Of The Decade

Gold miners are thriving as…

Vigilante Offers $100,000 Bounty To Hack Banks

Vigilante Offers $100,000 Bounty To Hack Banks

A well-known vigilante hacker offered…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ, Oilprice.com…

Contact Author

  1. Home
  2. News
  3. Breaking News

Tesla To Build $5 Billion Plant In China

Shanghai

Tesla plans to build a US$5-billion car-manufacturing plant near Shanghai in China, and is weighing possibly raising part of the funds for the factory from local partners, Bloomberg reported on Wednesday, citing a person familiar with the plans.

Tesla expects to begin production of its Model 3 in the new Chinese plant by 2020, Bloomberg’s source said.

Last month, reports had it that Tesla plans to build a manufacturing plant in China with a capacity to produce 500,000 vehicles annually, and was expected to sign a preliminary deal on the matter with local entities in Shanghai.

Elon Musk visited China in July, and said that he had excellent meetings with senior leaders in the country. Musk said on Twitter on July 12 that he was “impressed” with the Tesla China team and the potential for the future.

According to Bloomberg, Musk struck a preliminary agreement to begin construction for the 500,000-car-a-year plant in China, with first cars expected to roll out of the assembly lines in about two years. Neither Tesla nor the Shanghai officials have revealed any estimates about how much the factory would cost and how it would be paid for.

Now Bloomberg’s source says that Tesla might be looking to raise part of the funds from Chinese partners. Related: T-Mobile, Nokia Up Ante for 5G In $3.5B Deal

The U.S. electric vehicle maker continues to insist that it doesn’t need to raise money via new bond or equity issues, despite analyst estimates that it would need to tap markets again as it is burning through a lot of cash.  

Musk’s visit to China and a potential deal on a Chinese factory for Tesla is coming at a crucial moment for the U.S. EV maker, which has reportedly had to significantly raise the retail prices of the vehicles it sells in China, due to the latest tit-for-tat trade tariff spat between the United States and China.  

By Tsvetana Paraskova for Safehaven.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment