Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Tesla Plans to Invest $5 billion in China in Move to Avoid Tariffs

Published 08/01/2018, 05:20 AM
Updated 08/01/2018, 05:20 AM
© Reuters.  Tesla to invest $5 billion in China to avoid tariffs

© Reuters. Tesla to invest $5 billion in China to avoid tariffs

Investing.com - Tesla (NASDAQ:TSLA) plans to invest $5 billion to produce cars in China and avoid possible tariffs as trade tensions between the U.S. and Beijing remain on edge, according to a report from Bloomberg.

The company is looking to raise funds in China to finance at least a portion of the investment for the plant, one source told Bloomberg.

According to the report, Tesla will begin producing its new Model 3 vehicle at the factory near Shanghai in 2020.

Last month, chief executive officer Elon Musk made an agreement with Chinese authorities to build a new its first factory outside the U.S. and the move was expected to double the size of the electric car maker’s global manufacturing.

The agreement was reached not long after Tesla raised prices on U.S.-made vehicles it sells in China in order to offset the cost of new tariffs imposed by Beijing in retaliation for President Donald Trump’s heavier levies on Chinese goods.

The news comes on the back of a Wall Street Journal report that said Monday that Tesla was also in talks with authorities in Germany and the Netherlands to build its first major European Gigafactory, designed to build cars and batteries in the same place.

The reported price tag hits the wires as Tesla prepares to report second quarter earnings after Wednesday’s market close.

Consensus is looking for a quarterly loss of $2.78 per share on revenue of $4.03 billion.

Analysts will also be paying close attention to see if Tesla is shipping more than 5,000 Model 3 units per week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.