Tesla to take new $1.4-B loan from Chinese banks for Shanghai factory

SHANGHAI: Tesla clinched more than 10 billion yuan ($1.4 billion) in financing from local banks for its Shanghai factory as it prepares to begin deliveries of China-made Model 3 sedans in the country, people familiar with the matter said.

CEO Elon Musk is counting on the China plant to help build on recent momentum for the company in the world's largest market both for electric vehicles and autos in general. Tesla’s new car registrations in China climbed to a five-month high of 5,597 in November, compared with 393 a year earlier, according to China Automotive Information Net.

Tesla’s China-built Model 3s are set to start at about $50,000, slightly cheaper than imported versions. The company may lower the price of locally assembled sedans by 20% or more next year as it starts using more local components and reduces costs, people familiar with the matter have said.