Tesla got funding of $ 520 million for first Chinese plant

Electric car maker Tesla has won a loan of more than $ 520 million from Chinese banks to make its first foreign automaker near Shanghai, which is the first foreign automaker to build a factory in China.

Funding, announced on Thursday, is a significant boost for California-based firm, who has been negotiating with Beijing for years to build a plant in the world's largest electric car market.

The American giant will make its model 3 sedan in the factory - initially aiming at 3,000 production targets in a week, before completing annual production up to 500,000 - which is planned to be started by the end of the year.

Tesla's Chief Executive Officer Elon Musk was in China for groundbreaking factory in January, where he said he had planned to contact the local banks for the production and production of the plant.
Musk is betting on China's growing market for electric cars because Beijing industry pushes away from fossil fuel vehicles.

Manufacturing locally, it is expected that Tesla will help reduce the cost of production, while avoiding the impact of trade tension between the US and China.

According to a regulatory filing, Tesla has secured $ 521 million from four domestic banks - Industrial and Commercial Bank of China, Chinese Construction Bank, Agricultural Bank of China and Shanghai Pudong Development Bank.

After New York trading, Tesla's shares increased by more than two percent.

China is by far the world's largest car market, and its sales have been rising for years, although in 2018, it has slipped 2.8 percent.

Sales of electric vehicles and hybrids are continuously rising - 62 percent jump last year - but only four percent of overall sales in China.

Tesla is made in Lead, but according to Jata Dynamics, the analysis provider is followed by three Chinese brands - BAIC, BYD and Zotye.