Tesla secures $1.4 billion Shanghai factory loan, hits $420 share price


There’s been a flurry of year-end electric vehicle finance activity and signs of EV optimism going into 2020.

Tesla share price hits $420

In August of last year, Elon Musk let the world know via Twitter that he was looking to shift his $60 billion-market cap EV pioneer from a public to private company.

His 2018 tweet read: “Am considering taking Tesla private at $420. Funding secured.”

It would have been the biggest leveraged buyout in history – with a value of about $82 billion counting debt. Musk said that the deal was contingent on a shareholder vote, but added that “investor support is confirmed.”

The deal never happened. Instead, Musk was fined $20 million by the SEC and had to step down as Tesla chairman.

Tesla’s stock price dropped to $170 earlier this year, but has rebounded to reach the $420 number at which Musk had once valued the company. Musk spiked the ball on Twitter.

Tesla now has a market cap of $76.6 billion compared to General Motors with a market cap of $52.3 billion.

Tesla’s $1.4 billion loan for the Shanghai factory

Citing sources with direct knowledge, Reuters reported that a group of banks including China Construction Bank, Agricultural Bank of China, and Industrial and Commercial Bank of China will furnish Tesla with a new $1.4 billion, five-year loan facility for its Shanghai factory, “part of which will be used to roll over an existing loan.”

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The recently completed building in Shanghai is Tesla’s first factory outside of the United States and would be China’s only completely foreign-owned car factory.

Rivian raises another $1.3 billion for electric SUVs and pickups

Rivian raised $1.3 billion from investors including mutual fund company T. Rowe Price, Amazon, Ford and BlackRock. Rivian raised $2.85 billion in 2019 to develop its electric SUV and pickup.

Amazon ordered 100,000 electric delivery vans using Rivian’s platform technology with deliveries starting in 2021. Rivian has a 2.6-million-square-foot plant in Normal, Illinois, and hopes to launch its products in the United States in late 2020.

LS Power acquires EVgo’s fast-charger business

LS Power acquired EVgo’s electric vehicle public fast-charger business for an undisclosed sum from Vision Ridge Partners. EVgo rose from the ashes of the Enron-induced California state power crisis in 2001 and the ensuing $100 million allocation toward setting up a charging network. EVgo has 750 sites with 1,250 fast chargers across 34 states, according to reports.

EV optimism in 2020

Tesla is going to have to sell a bit more than 100,000 cars in the fourth quarter of 2019 to hit its forecast of 360,000 to 400,000 vehicles for the year. It’s a reach – but an achievable goal for Tesla in 2019.

Here’s a long list of mainstream EVs coming in 2020 with ranges of at least 200 miles.

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