Trolling for more crony money: Tesla Weighs Chinese Funding for $5 Billion Factory

Why did I just think of the scene in the Godfather where Luca Brazi goes over to test the waters with another family but ends up getting housed?

“Sure, sure, Mr. Musk, we’ll give you $5 billion. But there may be a time when we have to ask you for a favor…

(From Bloomberg)

Tesla Inc., under fire from investors for burning through cash as it ramps up production, will look to China to at least partially fund the cost of building its first factory in the world’s fastest-growing auto market.

The electric-car pioneer is considering raising some of the $5 billion it intends to invest in the plant near Shanghai from local partners, according to a person familiar with the plans, who asked not to be identified as the matter is private. Chief Executive Officer Elon Musk secured a preliminary deal to build the factory last month, just days after China’s retaliation against President Donald Trump’s tariff hikes boosted the cost of exporting cars made in the U.S.

Chinese funding partners could enable Tesla — which is yet to turn a profit — to share the financial burden of realizing an ambitious expansion plan that includes building a factory in Europe. While analysts say the California-based company will need to raise capital to bring its plans to fruition, so far Tesla has insisted it doesn’t need to do so. The carmaker had just $2.7 billionin cash at the end of the first quarter, and has been spending billions of dollars on accelerating production of its Model 3 sedan.

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