A report from equity research firm JL Warren Capital says that Tesla is lining up around $2 billion in loans from Chinese banks to build out its Shanghai Gigafactory.
Tesla is lining up about $2 billion from Chinese lenders to build out its massive battery and car plant in Shanghai, according to research from JL Warren Capital.
"We need to bring the Shanghai factory online," Musk said."I think that's the biggest variable for getting to 500,000-plus a year. Our car is just very expensive going into China. We've got import duties, we've got transport costs, we've got higher costs of labor here." JL Warren said the first stage of financing will likely have a 3.9 percent interest rate, below the Public Bank of China benchmark rate of 4.35 percent. That should help Tesla get its assembly line running to produce its initial 250,000 lower-end Model 3 electric sedans.
Automakers based in China have benefited from $60 billion worth of subsidies and incentives since 2012, designed to make new energy vehicles affordable for Chinese drivers, according to ZoZo Go, an auto-tech advisory firm.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
VW to Invest Nearly $2 Billion In Ford Self-Driving Car VentureVolkswagen is planning to invest around $1.7 billion in a self-driving car venture with Ford’s subsidiary Argo as auto makers seek to share the huge costs of developing self-driving cars.
Read more »
The trans, disabled model taking on a $2-trillion industryBorn with cerebral palsy and identifying as a gender-non-conforming trans woman, Aaron Philip wants to change fashion forever (via CNNstyle)
Read more »
Global Reveal: Polestar 2, The Electric Tesla Model 3 Competitor With Vegan InteriorPolestar, the premium ecological car company created by Geely Auto as Volvo’s halo brand, has revealed details of the affordable all-electric premium performance car, the Polestar 2, a Tesla Model 3 competitor, ahead of the 2019 Geneva Motor Show
Read more »
Tesla may unveil the Model Y this year — here's everything we know about the vehicle so farTesla CEO Elon Musk has indicated that Tesla will unveil its next vehicle, the Model Y crossover SUV, this year.
Read more »
Tesla faces a cash crunch with a $920 million debt payment due FridayOn Friday, close to $1 billion in debt comes due for Tesla, an obligation that will wipe out about a quarter of the company’s cash.
Read more »
Meet Elon Tusk: Tesla chief changes Twitter display nameTesla Inc Chief Executive Officer Elon Musk changed his Twitter display name to ...
Read more »
The five most highly anticipated electric vehicles to be released (and none is a Tesla)JJurica Dujmović surveys a dynamic landscape, from a Harley-Davidson motorcycle to a Chinese SUV.
Read more »