Tesla Inc. is reportedly looking to China for a substantial funding opportunity to further expand its operations in the Asian economy.
According to Bloomberg, the American corporation is eyeing the change to raise up to $5 billion for an investment in a factory near Shanghai. Tesla's CEO Elon Musk had secured the deal to build a factory in China just last month.
It remains unclear which Chinese funding partners will team up with Tesla for this particular funding. It is also unclear whether Tesla will raise the capital first, considering the company had just $2.7 billion in cash at the end of the first quarter and had high costs associated with the production of the Model 3 Sedan.
On the stock market, Tesla shares rose about 0.6% before Wednesday morning. As of Tuesday, the stock dipped 4.2% collectively this year. The market value of the company stands at $50.6 billion.
The need to secure a factory in China could be influenced by the country's imposition of a 25% additional tariff on imports of U.S.-manufactured cars that was imposed in response to American tariffs on Chinese goods worth $34 billion.