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Blog Report: Tesla Considering $5B Funding for Shanghai Plant

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Tesla is considering raising $5 billion from Chinese investors to fund its recently announced plant near Shanghai, according to a report from Bloomberg.

The report cited a person familiar with the plans, but did not include comment from Tesla. While intentions to build the plant in Shanghai were announced last month, Tesla didn’t offer details on how much the factory would cost.

The China factory is important for Tesla in that it will help the company avoid a 25 percent additional tariff on U.S.-made cars. China is the world’s biggest market for electric cars and the second-largest market for Tesla.

Chief Executive Elon Musk has insisted that the company has no plans to raise additional capital, but many analysts believe Tesla is running short on cash as it attempts to get Model 3 manufacturing up to speed.

“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,” Bloomberg reported.

 
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The Chinese businessmen are going to fall over themselves to be a part of funding this. If the Chinese government don't chip in themselves.

It's hilarious that the west doesn't understand just how seriously China is taking electric vehicles and power; nor how much they're happy to support the businesses that understand that. They didn't just change the laws on factory ownership on a whim. That was a specific change targeted at Tesla. Who else is a large all electric vehicle manufacturer looking to build a factory soon?

The factory will go up faster than people here think too. The Chinese have got the management of huge infrastructure building projects down pat.
 
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The Chinese businessmen are going to fall over themselves to be a part of funding this. If the Chinese government don't chip in themselves.

It's hilarious that the west doesn't understand just how seriously China is taking electric vehicles and power; nor how much they're happy to support the businesses that understand that. They didn't just change the laws on factory ownership on a whim. That was a specific change targeted at Tesla. Who else is a large all electric vehicle manufacturer looking to build a factory soon?

The factory will go up faster than people here think too. The Chinese have got the management of huge infrastructure building projects down pat.

Another reason to buy TSLA.

Amazon changed the commerce industry.

Tesla is changing the energy and transportation industries!