The company raised $1.4 million in loans
Tesla has sourced over $1.4 billion in the financing, the capital has been loaned form several Chinese banks. The fresh funds will be used to build a new gigafactory in the city of Shanghai. The official acknowledgment of the funding from the company might come later this week. The loan money will be used in the span of five years for building gigafactory and facilitate the establishment of operations in China.
The announcement came from the company back in July 2018, later it started pre-booking orders for Model 3 cars that will be build in China. The Chinese manufactured cars will cost less than the imported ones. The new factory will target the Chine Market for the sale of Model 3 vehicle. Tesla already started working on the new facility in Shanghai.
China is the prime market for Tesla
It will take some time to complete the giant factory, but the partially built facility already started working on the manufacturing of some vehicles. Elon Musk, CEO of Tesla informed that there are four gigafactories across the globe either function or in the process of construction. The other sites include Berlin, Reno, buffalo which got the gigafactory. The fifth location yet not been revealed as it is in preliminary stages of planning.
Tesla is known for its visionary and pathbreaking technology in the auto-manufacturing sector. Recently it has launched Cyber-truck which is durable versetile, capable and high-performance on and off the road. China is one of the prime markets for the company due to its economy and prowess in the manufacturing sector.