Chinese Banks Are Scrambling to Fund Tesla’s Shanghai Plant, Sources Say

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By Zhang Erchi, Zhang Yu and Mo Yelin / Jan 28, 2019 05:29 PM / Business & Tech

A Tesla flag waves on the site of the company's manufacturing facility in Shanghai. Photo: VCG

U.S. electric-car pioneer Tesla is taking bids to fund its $5 billion China factory, and multiple Chinese banks are rushing to get involved.

A consortium made up of several Chinese banks has been formed to provide loans to the project, sources from several Chinese banks told Caixin. But the leader for the group has yet to be chosen, and multiple plans regarding the details of funding terms have been presented to Tesla, these people said, asking not to be named as negotiations are still underway.

The Shanghai plant, wholly-owned by Tesla, is the U.S. carmaker’s first outside its home market in the States. CEO Elon Musk has previously said Tesla would seek local debt to fund the factory.

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