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在线翻译:
szdaily -> Business_Markets -> 
Tesla to raise funds for construction of China factory
    2018-08-03  08:53    Shenzhen Daily

TESLA Inc said Wednesday that it would raise capital from Asian debt markets to fund the construction of its third “Gigafactory,” which will be located in Shanghai and cost an approximate US$2 billion.

In the electric vehicle maker’s second-quarter earnings statement, published after the market close, Chief Executive Elon Musk said that he expected much of the car assembly plant to be “funded through local debt.”

The carmaker said in July that it had agreed with the Chinese government to manufacture vehicles in Shanghai, the first of its so-called Gigafactories to be built outside of the United States.

The capital expenditure cost of Gigafactory 3 is estimated to be US$2 billion, Musk said on the conference call.

Tesla will need to raise debt because manufacturing challenges have left the company with a shortage of cash. Analysts said they believed Musk is turning to Asian markets because it is unlikely he would have been able to secure the sort of favorable terms from U.S. bond investors he did for his US$1.8 billion junk bond, issued in 2017 with a 5.3 percent coupon.

“Given the Chinese new energy vehicle laws in place, I would expect the terms of the debt to promote an electric vehicle factory and battery factory to be more accommodating than the U.S. markets right now,” said Jeffrey Osborne, managing director, sustainable energy and industrial technology at Cowen Inc.

For Tesla, which is rapidly burning cash and struggling to turn a profit, China is a key market. The country accounted for about 17 percent of its total revenue last year.

(SD-Agencies)

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