Tesla raised a US $ 1.4 billion loan to build a super factory in Shanghai, China

Tesla said it has won $ 1.4 billion in the form of loans from many Chinese banks to help build their new factory in Shanghai. Prior to the company’s official announcement, many news sites such as Reuters and Bloomberg had confirmed the funding.

The loan will be allocated over five years, and will be used for both building a gigafactory – a new super factory as well as helping Tesla financially to set up its operating system in China.

Tesla’s factory is under construction in Shanghai.

Since July 2018, Tesla has been talking about plans to build a super-factory in Shanghai after it has authorized the pre-order of the Model 3 in the country. The automaker is expected to offer Model 3 cars made in China at a slightly lower price than imported cars.

Tesla’s new factory will focus on providing Model 3 vehicles specifically for the Chinese market. Tesla started constructing the factory in Shanghai in January earlier this year and produced a number of other vehicles, but as with its other super plants, the company could operate parts of the plant in while continuing to complete other parts of this huge factory.

If you include the gigafactory outside of Berlin, which was introduced by the company in November, Tesla now has four other gigafactories operating or under construction, including in Reno, Nevada, and in Buffalo, New York. Musk has revealed the potential location of a fifth factory, but the company has not provided any specific details about the plant.

Refer to TechCrunch