Bloomberg report: Tesla’s Gigafactory 3 in China will likely cost $5 billion

Bloomberg report: Tesla’s Gigafactory 3 in China will likely cost $5 billion

According to a Bloomberg report, the cost of construction of Tesla Gigafactory 3 in China is expected to be $5 billion. Tesla Motors has been burning cash but with better deliveries of Model 3, investor expectations are high from the electric vehicle maker. Tesla is already in discussion with Germany and the Netherlands regarding its next Gigafactory.

The Bloomberg report is based on the information shared by an unidentified source who has also disclosed that Tesla will apparently pay for the projected cost of its new Gigafactory in China with a possible investment from a local partner.

The source familiar with the matter has specifically revealed on the condition of anonymity that Tesla is “considering raising some of the $5 billion it intends to invest in the plant near Shanghai from local partners.” The source also said that Tesla’s partnership with the local partner will be purely with a financial interest.

The Bloomberg report has come against the backdrop of Tesla’s last-month confirmation of its plans to build a Gigafactory in China. Tesla had revealed that it had reached a preliminary deal for the Gigafactory with the authorities in Shanghai. However, the company had not shared any details with regard to the excepted cost of the Gigafactory and its plans to pay for it.

Nonetheless, in announcing its China Gigafactory plans, Tesla had said that it would likely commence construction of the Gigafactory “in the near future,” and will start production at the factory in “roughly two years.”