Tesla stock touched an intraday high Friday as reports said it plans to deliver its first cars made in China and received a $1.29 billion loan from Chinese banks for its Shanghai factory.
XThe first 15 Model 3 cars will go to Tesla (TSLA) employees on Dec. 30, made at its new multibillion-dollar plant, according to a report from Bloomberg.
The Shanghai factory will be Tesla's first full-scale production plant outside of its Fremont, Calif., operation. Its goal is to produce 250,000 vehicles a year in China, which will include the upcoming Model Y crossover utility vehicle.
In addition, the China-built Model 3 was included on a list of vehicles qualifying for an exemption from a 10% purchase tax in the country.
Tesla Stock Performance
Tesla stock hit an intraday high of 435.31, then edged down 0.1%, closing at 430.38 on the stock market today.
Shares are up about 70% since the company reported third-quarter earnings on Oct. 23 that showed an unexpected profit, with a slight miss on revenue. Company officials attributed the swing to profitability in Tesla earnings to a reduction in costs.
Tesla said in October the China-built Model 3 sedans will be priced near $50,000. On Friday, Tesla received an exemption from a 10% purchase tax for its Model 3 from China authorities, which should lower the purchase price. In addition, the Model 3 early this month qualified for a government subsidy of about $3,600 per vehicle.
The Model 3 vehicles in China will compete with electric cars from local contenders such as Nio (NIO) and Xpeng Motors.
Tesla confirmed in a filing with the Securities and Exchange Commission that it received a secured term loan of about $1.29 billion. It also signed agreements for an unsecured revolving loan with local Chinese lenders for up to 2.25 billion yuan. Both loans will help fund its Shanghai plant. Altogether, the financing totals about $1.6 billion.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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The post Tesla Stock Near High As Model 3 Cars Ready To Roll Out In China appeared first on Investor's Business Daily.
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