Tesla's move to build a new plan in China will include up to $3 billion to for a new plant and other expenditures.
Already plagued by rumors of needing to raise additional money, Tesla officials expect to spend between $5 billion and $6 billion in the next two years to expand production.
The company, which revealed the plan in its quarter filing with the Securities and Exchange Commission, is making big moves with the money.
Tesla will spend between $2.5 billion and $3 billion in capital expenditures readying the business for increased Model 3 production, development on its next vehicle, the Model Y, the second-generation Roadster and other projects, according to the filing.
Additionally, the company expects to spend the same amount for its move into China.
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Tesla Inc. has reached an agreement with the Chinese government to build an assembly plant in China.
The company will build a new plant in China, which it is calling Gigafactory 3. The company expects to build as many as 3,000 of its popular Model 3 sedans a week. No word on whether those Model 3s would be for China only or would they be shipped to other countries.
The filing includes plenty of legal language warning the time frame on its production targets was “subject to a number of uncertainties, including regulatory approval, supply chain constraints, and the pace of bringing the factory online.”
Gigafactory 1 is the company’s plant near Clark, Nevada, while Gigafactory 2 is its solar power plant in Buffalo, New York.
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Tesla has long targeted opening a plant in China, but it’s more critical now due to the tariffs in place as a result of the ongoing trade war between the U.S. and China. Other automakers are examining this strategy as well.