Tesla seeks $ 2 billion loan

According to the latest research companyJL Warren Capital, specializing in the Chinese financial market, Tesla is currently trying to attract $ 2 billion (more than 13 billion yuan) of private investment to build a huge battery and electric vehicle factory in Shanghai. According to the source, Pudong Development Bank in Shanghai, Industrial and Commercial Bank of China, China Construction Bank, as well as the Agricultural Bank of China may become Tesla’s main partners in this case.

Tesla considers China a very important market.for growth. In 2018, over 1.25 million electric vehicles were sold in China. As part of the program to improve the environmental situation in the country, the Celestial government wants to increase this figure to 7 million by 2025. Tesla, of course, wants to be part of this initiative.

In January of this year, the company’s CEOIlon Musk visited China and spoke about his immediate plans for developing his business. Apparently, local officials liked the American businessman and his ideas so much that they even gave him a “green card” that allows Mask to become a tax resident of the Middle Kingdom and conduct business in this country.

“We have to start a factory in Shanghai. I think that this will be the best opportunity to reach the planned production level of more than 500 thousand Tesla electric vehicles per year. To drive our cars to China is very expensive. Interfere with the import went, logistic costs. In addition, the cost of labor is higher in our country, ”Musk noted at a meeting with local Chinese authorities.

The latest report from JL Warren Capital, which alsois analyzing Chinese companies present in the US market, says that the company plans to invest about 500 million dollars (3.3 billion yuan) of the total amount of attracted investments in the first stage of construction of the Gigafactory plant in Shanghai.

In the report for the fourth fiscal quarter of last year, Musk noted that the capital costs for the production of 3000 Model 3 electric vehicles in Shanghai will be about $ 0.5 billion.

JL Warren predicts that in the first stageThe financing interest rate for Tesla can reach 3.9, which is lower than the 4.35 rate set by the People’s Bank of China. This, according to the analytical company, will allow the American manufacturer of electric cars to reach the level of production of 250,000 Model 3 electric sedans.

In the company Tesla has not commentedinformation provided by JL Warren. By the way, between Tesla itself and JL Warren in the past there were strained relations. In 2017, a research firm published a report stating that 6,000 electric vehicles supplied to China were not sold. In response, Tesla representatives in an interview with Forbes said that the data “are inaccurate and not credible.”

China is seeking to fix the environmental crisis incountry, introducing new, more environmentally friendly technologies in all areas of production. This initiative also affects the market for automakers switching to the production of electric vehicles. For example, those auto manufacturers whose headquarters are located in China, since 2012 have received government subsidies and other support totaling $ 60 billion. Thus, the government stimulates the industry to switch to the production of affordable electric vehicles for the public.

Without the existing production base in China Teslamisses these benefits. Thus, the same Model S electric car, the basic version of which in the USA is now offered for about $ 80,000, after all the costs associated with shipping to China, will cost about $ 140,000, which, of course, greatly reduces the number of potential buyers . With a factory in China, the company could take full advantage of state support, reducing not only its costs, but also the final cost of Model 3 electric vehicles, not only in China, but worldwide.

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