Tesla Weighs Chinese Funding for $5 Billion Factory

[DonViejo]

Source: Bloomberg News

August 1, 2018, 5:10 AM EDT Updated on August 1, 2018, 7:06 AM EDT

Partners would allow carmaker to share financial burden

China plans have taken on more urgency with the trade war

Tesla Inc., under fire from investors for burning through cash as it ramps up production, will look to China to at least partially fund the cost of building its first factory in the world’s fastest-growing auto market.

The electric-car pioneer is considering raising some of the $5 billion it intends to invest in the plant near Shanghai from local partners, according to a person familiar with the plans, who asked not to be identified as the matter is private. Chief Executive Officer Elon Musk secured a preliminary deal to build the factory last month, just days after China’s retaliation against President Donald Trump’s tariff hikes boosted the cost of exporting cars made in the U.S.

Chinese funding partners could enable Tesla -- which is yet to turn a profit -- to share the financial burden of realizing an ambitious expansion plan that includes building a factory in Europe. While analysts say the California-based company will need to raise capital to bring its plans to fruition, so far Tesla has insisted it doesn’t need to do so. The carmaker had just $2.7 billion in cash at the end of the first quarter, and has been spending billions of dollars on accelerating production of its Model 3 sedan.

Read more: https://www.bloomberg.com/news/articles/2018-08-01/tesla-is-said-to-plan-5-billion-investment-in-chinese-factory

[ffr]

1. Spend some time behind the wheel of a Tesla and you'll get addicted.

I'm in love with their cars.

It's the right direction and it's way more sustainable than internal combustion.

[Initech]

3. I have a friend who has a Model X, it's pretty impressive.

I would love to own one but they're a bit out of my price range. I like the Model 3 but the fact that everything is controlled from a center console tablet isn't exactly my kind of thing.

[Initech]

2. Well so much for Trump's "buy American" campaign!

[Tikki]

4. Our son just bought an American made Tesla 3.

Amazing vehicle...

I agree about foreign manufacturing, though.

Tikki

[Initech]

5. I would love to buy one.

But a bit too rich for my wallet at the moment!

[Tikki]

6. He is guaranteed some rebates and needs a vehicle like this for his work situation.

I have to tell you...it is nice in every way.



Tikki