Tesla gets $708m in loans for first factory in China

Gladys Abbott
March 11, 2019

"Another reason for terminating the Shanghai factory plan is that the Chinese government this year introduced some new policies to encourage vehicle manufacturers and research and development institutions to further develop vehicles through cooperation", Xie said.

Xu Jiandong, a vice-president at SCG, was quoted by media outlet the Shanghai Observer saying that the company would fully cooperate with Tesla to achieve its objectives in building the plant.

SCG is one of the world's largest construction companies.

Tesla also has Gigafactories in the Nevada deserts and in Buffalo, New York.

Tesla said that the latest price adjustments were not due to sales results.

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Tesla said on Thursday that it signed an agreement with Chinese banks for a loan of up to $521 million to build its first overseas Gigafactory in Shanghai.

The announcement was made as the aspiring electric vehicle maker released its financial figures for 2018, showing a turnover of 720 million dollars, but also a net loss of 1.4 billion dollars - nearly twice as much as a year ago.

US-listed NIO has been working with state-owned automaker JAC Motors in eastern Anhui province to make its ES8 model but wanted to add its own factory in Shanghai. Tesla began delivering the first Model S cars built there in June 2012.

Mr Musk is betting on China's growing market for electric cars as Beijing pushes the industry away from fossil fuel vehicles. The Chinese government is aiming for NEVs to make up 20 percent of all vehicle sales by 2025, in an effort to curb pollution in the country.

The US regulators slammed the Tesla CEO because he "once again published inaccurate and material information about Tesla to his over 24 million Twitter followers". -China trade war, which has forced Tesla to adjust prices of its USA -made cars in China. The price increase caused sales of Tesla vehicles to plummet in China. -China trade war as well. Talks are still ongoing and the March 1 deadline to reach a deal has been extended by President Trump.

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