Musk Says $500 Million Enough to Get Tesla Shanghai Production Running
- Majority of China funding to come from local banks, CFO says
- Compelling interest rates mean no capital drain on Tesla: Musk
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Elon Musk told investors Tesla Inc. won’t incur a heavy financial burden to get production up and running in its first overseas factory, seeking to soothe investor concerns about capital requirements for the Shanghai facility.
Capital expenditure of about $500 million is needed for Tesla to reach a weekly production rate of 3,000 vehicles, the chief executive officer said on an earnings call Wednesday. A majority of the funding will be by local banks, and with competitive debt financing and “extremely compelling interest rates,” Tesla doesn’t expect the investment to be a capital drain on the company, he said.