Tesla is Putting Together a Big Amount of Money to Go Towards This


 
 
03:30 03/04/2019

According to equity research firm JL Warren Capital, Tesla TSLA  is lining up about $2 billion in loans to build its gigafactory in Shanghai.

The research firm said that it expects backers of the Shanghai Gigafactory to include Shanghai Pudong Development Bank, Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China.

"We need to bring the Shanghai factory online," Musk said recently. "I think that's the biggest variable for getting to 500,000-plus a year. Our car is just very expensive going into China. We've got import duties, we've got transport costs, we've got higher costs of labor here."

JL Warren believes that Tesla's new financing should apply to the first stage of the Shanghai Gigafactory build, with the total project loan amounting to about $2 billion.

The research firm also believes that the first stage of financing will likely have a 3.9 percent interest rate, below the People's Bank of China benchmark rate of 4.35 percent.

Tesla has not confirmed anything and has disputed research from JL Warren in the past.
Last month the company's CEO Elon Musk was in hot water again as the Securities and Exchange Commission asked a judge to hold Musk in contempt for violating its deal.

According to Bloomberg, the SEC cited an "inacurrate" tweet from February 19th from Musk over the company's production.

Musk had tweeted that Tesla would make "around" 500,000 vehicles this year. Hours later he clarified that he "meant to say" the company's annualized production rate at the end of 2019 could be around 500,000 vehicles. Musk then said that total deliveries for the year are still estimated at 400,000.

The SEC wrote in a court filing, "Musk did not seek or receive pre-approval prior to publishing this tweet, which was inaccurate and disseminated to over 24 million people."
Musk later tweeted, "SEC forgot to read Tesla earnings transcript, which clearly states 350k to 500k. How embarrassing ..."

He also tweeted, "Indeed. I have great respect for judges. It's not perfect, but, in general, we should be very glad of the US justice system."

The SEC wrote, "in response to the SEC's February 20 request for information, Musk and Tesla state that, since Tesla's Policy was implemented in December 2018, Musk's tweets have been reviewed after their publication, but there is no suggestion that Musk has sought or obtained pre-approval of any tweet prior to publishing it."

The agency also said, "For all the reasons stated, the SEC respectfully requests that the Court enter an order to show cause why Defendant Elon Musk should not be held in contempt of the Court's October 16, 2018 Final Judgment."

 




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