Tesla expected to grab $2b loans from Chinese banks to speed up mass production

United States electric-vehicle maker Tesla is seeking a US$2 billion loan from Chinese banks to fund construction of its Shanghai plant, CNBC reported Thursday, citing New-York based equity research firm JL Warren.

The research firm, which focuses on Chinese companies and listed multinationals in China, expects the lenders to include the Industrial and Commercial Bank of China, China Construction Bank, the Agricultural Bank of China and Shanghai Pudong Development Bank.

Tesla CEO Elon Musk, during the company’s latest earnings call in January, described the Shanghai plant as a key variable for getting to 500,000-plus vehicles manufactured per year.

The EV maker inaugurated a plant Shanghai early in January to speed up mass producing its popular vehicles, especially its lower-priced Model 3.

Tesla is the first and currently the only international car company to be allowed to establish a factory in China without a joint ownership deal with a local entity.