Tesla Inc has clinched more than 10 billion yuan (US$1.43 billion) in financing for its Shanghai factory from local banks as it prepares to begin deliveries of China-made Model 3 sedans, people familiar with the matter said.
An announcement would probably be made as soon as this week, one of the people said, asking not to be identified discussing a private matter.
Tesla representatives did not immediately respond to requests for comment.
BIGGEST MARKET
Tesla chief executive officer Elon Musk is counting on the Chinese plant to help build on momentum for the company in the world’s largest market both for electric vehicles and autos in general.
Tesla’s new-car registrations in China climbed to a five-month high of 5,597 last month, compared with 393 a year earlier, according to China Automotive Information Net.
China-built Model 3s are set to start at about US$50,000, slightly cheaper than imported versions.
Tesla could lower the price of locally assembled sedans by 20 percent or more next year as it starts using more local components and reduces costs, people familiar with the matter have said.
COMPANY VALUATION
Tesla shares rose to a record US$413 this month, or a US$73 billion valuation that is greater than all but Toyota Motor Corp (US$230 billion) and Volkswagen AG (US$98 billion) among 38 automakers worldwide.
Tesla’s valuation is 37 percent more than General Motors Co and is almost twice that of Ford Motor Co (US$37 billion) because nothing gets stock pickers more excited than unprecedented growth.
Since the first Model S was purchased in 2012, Tesla sales have increased 52 times, while the rest of the industry has averaged 46 percent growth.
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