Tesla Inc. has lined up more than $1.4 billion in financing from local banks for its Shanghai factory as the maker of electric cars prepares to begin deliveries of China-made Model 3 sedans in the country, people familiar with the matter said.
An announcement will probably be made as soon as this week, one of the people said, asking not to be identified discussing a private matter. Tesla shares rose 3.4% to close at $419.22.
Chief Executive Elon Musk is counting on the China plant to help build on recent momentum for the company in the world’s largest market both for electric vehicles and autos in general. Tesla’s new-car registrations in China climbed to a five-month high of 5,597 in November, up from 393 a year earlier, according to state-backed China Automotive Information Net.
The price of Tesla’s China-built Model 3 is set to start at about $50,000, slightly cheaper than imported versions. The company may lower the price of locally assembled sedans by 20% or more next year as it starts using more local components and reduces costs, people familiar with the matter have said.
Reuters reported on the financing earlier Monday. Tesla representatives didn’t immediately respond to requests for comment.
The stock’s climb Monday morning brought the intraday price above $420 a share for the first time. Investors will remember that as the value at which Musk claimed Tesla would go private last year.