Exhibitor News

Musk wants to raise $2 billion to build a factory in China

Less than a month after the signing of the contract, foreign media reported the latest news of tesla's investment in Chinese factories.
On August 2, tesla CEO musk said the construction cost of tesla's Shanghai superplant is estimated to be $2 billion. Tesla has no intention of increasing equity and will pay off future debt through internally generated cash flow.
In addition, Mr Musk said the MODEL 3 would bring a total profit margin of 25 per cent in the first or second quarter, although no decision has yet been made on the location of the MODEL Y, which is expected to produce about 250,000 vehicles a year at Chinese plants.

Tesla's revenue surged to a record $4 billion, up 43 percent from a year earlier, according to the company's just-released second-quarter results, though tesla remains unprofitable with a net loss of $743 million, an 85 percent increase from a year earlier. In the second quarter, tesla made a total of 53,339 vehicles and delivered 40,768, including 22,319 Model S and Model X, and 18,449 Model 3.
In fact, musk has been having a lot of trouble: capacity, tariffs, batteries, testing, plant construction, qualifications But at the end of the day, there is really only one problem - cash flow.
For a company whose share price is on a par with ford's, but which has never made a profit, any trifle would be enough to make it stretched, precisely because of a shortage of cash.

For the last month has just signed a contract with the Shanghai government, however, tesla in China to build capacity in the 500000 super factory sources of funding, musk in earnings after the release conference call, he said: "for the Chinese market, our plan will be basically is to use China's local Banks provide a loan, with the local debt fund for Shanghai super factory (Gigafactory)."
Meanwhile, as to the source of funds for tesla's layout in China, some relevant people in the industry told the auto toutiao APP that China fortune may contribute to tesla, but the specific amount was not disclosed.

Wang wenxue, President of China fortune land development co. LTD

In fact, it is not surprising that China fortune has invested in tesla. According to the data, China fortune was founded in 1998, and is a real estate developer dedicated to the operation of industrial new town. At the same time, huaxia happiness has already laid out its layout in the field of automobile transportation. From the initial investment of zhihe department to the purchase of nearly 53.4% shares of hezhong new energy by wang literature with RMB 330 million, it has become the chairman of hezhong new energy, among which Lhasa zhixing innovation, which is 100% controlled by wang literature, has become the largest shareholder of hezhong new energy.
In addition, PonyCar has completed C round financing with a total amount of more than 250 million yuan, which has set a new record of single financing in the Shared vehicle field. In addition, zhixing innovation also participated in the a-round financing of bazhong travel with an investment of 25 million yuan.
In addition to China fortune, other real estate tycoons have also joined the bureau to build new car power, such as baoneng's yao zhenhua delisted brand qoros, Evergrande's xu jiayin collection editor Letv FF and many other real estate big crocodiles have extended their tentacles into the hot car field.
However, whether or not China fortune has been the subject of speculation, it is certain that tesla is working hard to promote its domestic products in China. As for tesla's future? The car headline APP will keep an eye on it.

Source: Automotive headlines

From Wangcai electric car

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