Tesla has secured a 3.5 billion yuan ($521 million) loan from Chinese lenders to support its Shanghai Gigafactory, according to a recent report. The facility, which broke ground in January, is expected to be completed by May, as stated by a Shanghai city government official.
The project, projected to cost around $2 billion, aims to reduce Tesla's exposure to U.S.-China trade tensions. Local production could help stabilize pricing amid tariffs that have forced the company to adjust U.S.-made vehicle costs in China.
Analysts suggest the move also strengthens Tesla's position against domestic electric vehicle startups like Nio Inc, Byton, and XPeng Motors. The financing agreement underscores the automaker's commitment to expanding its presence in the world's largest automotive market.
Reporting by Akanksha Rana in Bengaluru; Editing by Sriraj Kalluvila
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