Tesla Is Building Big In China, Should The US Be Worried?


Tesla loves to do big things and break the limits. Google and Microsoft and of course, a handful of Western companies love to do business in China. Tesla has reportedly secured more than $1.4 billion in financing in the form of loans from multiple Chinese banks in order to help fund the construction of its new gigafactory in Shanghai.

The big issue is, in the event of a fiasco in international politics, which sometimes is predictable, are these companies safe from China’s bully politics and interference. Over the years, we’ve witnessed significant takeovers of foreign companies through indigineous laws. Although, any attempt by a country of China’s economic status to acquire such huge investment could be costly to its economy. In today’s world, that should never be thought of, however, stuffs do happen.

The loan will be distributed across five years, and will be used to both set up the new gigafactory and to help finance Tesla’s establishing of its China-based operations.

No fears though, as it is specifically for China.

Tesla said it will construct its Shanghai gigafactory in July 2018, after which it opened pre-orders for its Model 3 vehicle in the country. The automaker is expected to be able to offer Model 3 cars built in-country at a slightly lower price than imported models. This factory will focus on supplying Model 3 vehicles specifically for the Chinese Market, and Tesla began producing some vehicles, but as with its other gigafactories, the company can bring parts of the plant online while it works on completing other parts of the gigantic manufacturing plant.

Tesla CEO Elon Musk said in November, the automaker now has four gigafactories either operating, under construction or in development, including one in Reno, Nev., Germany, and one in Buffalo, N.Y. Musk has teased a potential fith gigafactory location reveal, but the company hasn’t provided any specifics thus far.


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