Tesla to build a factory in China, Musk will reach 5 billion US dollars

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Tesla to build a factory in China, Musk will reach 5 billion US dollars

2018-08-06 10:25:22 101 ℃

On July 10th, Tesla finally decided to settle in Shanghai and became a major victory in attracting investment in recent years.

But today, there was news that the US technology giant did not bring money to invest and was ready to build a factory with a Chinese bank loan.

It is said that Trass is coming to China to build a factory. We have given enough preferential conditions. They want to be wholly-owned and do not comply with China's relevant policies. We have revised the policy to let him go; they want discounts, and our local governments are rushing to give preferential terms; they want good land, we are in a place like Shanghai. Gave them a land.

In the end, they actually said that even the funds for the construction of the factory must be borrowed from us. Isn’t this just a clear-cut white wolf?

Muske is about $5 billion to reach out

On August 1, at Tesla’s second quarter earnings conference call, Some investors have questioned that Tesla has lost so much money and is now facing a tight cash flow. So what do you want to invest in China to build a factory?

Tesla’s CEO Elon Musk responded that he will use Chinese local capital to support the plan, specifically to find Chinese bank loans to build Shanghai’s new The workshop, and Musk is confident to get a loan.

According to the investment agreement signed by Tesla and Shanghai Lingang Management Committee and Lingang Group, Tesla will establish a wholly-owned operation in R&D, manufacturing and sales in the Lingang area. Tesla Super Factory, the project plans to produce 500,000 pure electric vehicles per year.

This is the largest foreign-invested manufacturing project in Shanghai's history. It is estimated that the required funds will be as high as US$5 billion, equivalent to RMB 34 billion. According to Musk, he will not get the money by selling equity, but he wants to get a preferential loan from a Chinese bank.

With such a large sum of money, if all of them are to be loaned from a Chinese bank, then it is not a small amount.

The current development of electric vehicles is changing with each passing day. There are certain variables in Sino-US economic and trade relations, and Tesla itself has a lot of financial problems.

But the Shanghai Lingang project is still far away from production. According to Tesla, the factory will take at least two years to start producing cars, and it may take another five years to achieve full production.

This also means that there is a big uncertainty in the domestic banks’ huge loans to Tesla, so which bank dares Feel free to borrow so much money for him?

To know that a bank is not a venture capital institution, the bank must first consider stability and then profit and return. Nowadays, American investors don't quite believe in Elon Musk, so why should Chinese banks believe in him?

Investing in a factory is just a trick to trick money?

Speaking of Elon Musk, not only reminds me of a person, it is Le Yue’s Jia Yueting.

Before Jia Yueting has not fallen to the altar, many LeTV fans often compare him to China’s Elon Musk. In other words, Elon Musk is the American version of Jia Yueting.

At the beginning, Jia Yueting also used various financial techniques to continuously carry out some high-level projects, and then borrowed money from the capital market to obtain investment. As a result, Jia Yueting went to the United States at the end, and then left LeTV's mess and a large sum of money owed by banks and suppliers, as well as countless minority shareholders who were lost.

Still familiar formula, or familiar taste

LeTV’s things are still vivid, such as yesterday, It’s time to start to popularize Elon Musk. Isn’t Jia Yueting’s lesson less painful?

This company, Tesla, is very inferior in technology and fame, but it is invincible to burn money.

According to the latest financial report released by Tesla, in the first quarter of this year, the net loss of Tras company reached 785 million US dollars, and the loss was fierce compared with 397 million US dollars in the same period last year. An increase of 115% created a record of Tesla's largest single-quarter loss since its inception in 2003.

In contrast, the total revenue of the company is 3.409 billion US dollars, although it has increased a lot compared with the income of 2.696 billion US dollars in the same period last year, but the calculated growth rate is only 26.45%. , far less than the growth rate of losses.

In fact, Tesla has not only lost money every year for 14 years, but the amount of losses has been increasing. The total amount of losses so far has exceeded $6 billion.

But after burning the money, Tesla’s production capacity has not improved, and the deposit of hundreds of thousands of cars has been collected, but only a few months can be delivered. Thousands of cars, according to this production speed, it is estimated that ten years to complete the order.

According to Bloomberg's forecast, according to Tesla's average consumption of $6,500 per minute, if he fails to obtain new funds, its funds may be exhausted by the end of 2018.

Yes, From 2016, there have been people in the United States who have been questioning whether Elon Musk is a liar like Jia Yueting. Sla is not a Ponzi scheme.

So when the news that Tesla is coming to China to build a factory is coming out, someone has already begun to wonder if this is the trick of Elon Musk’s coming to China to spend money. Today When it comes to building a factory with a loan of $5 billion to a Chinese bank, it is even more doubtful whether this is a scam!

Author | Zhou Songtao

Source | Chief Financial Watch