TESLA LINING UP ABOUT $2 BILLION IN FUNDING FOR SHANGHAI GIGAFACTORY
outside of China to be allowed to establish a factory there without a joint ownership deal with a local entity.
Tesla is lining up about $2 billion in loans to build its factory in Shanghai, according to equity research firm JL Warren Capital as gaining access to China represents a critical growth market for Tesla according to company CEO, Elon Musk. Tesla’s backers in China are expected to include Shanghai Pudong Development Bank, Industrial and Commercial Bank of China, China Construc- tion Bank and Agricultural Bank of China. Automakers based in China have benefitted from $60 billion worth of subsidies and incentives since 2012, designed to make new energy vehicles affordable for Chinese drivers, and Tesla is looking to benefit from these subsidies and incentives with the building of the Shanghai Gigafactory. Tesla establishing the Shanghai factory would change the pricing model for Tesla by allowing them to tap into these subsidies and incentives, potentially enabling the company to make and sell its Model 3 for a lower price both in China and globally.
Tesla is the only car company headquartered
BLACKBERRY CONTINUES IT FOCUS ON HIGHLY SECURE CLOUD-BASED SERVICES
BlackBerry is setting up a completely separate subsidiary in Washington, D.C., to strengthen the com- pany’s ties with critical U.S. federal agencies that require highly secure cloud-based services. This new subsidiary of BlackBerry will be focused on ensuring that more of the company’s products and services meet the strict U.S. requirements for assessing, authorizing and monitoring products and services that use cloud computing. BlackBerry executive chairman and CEO, John Chen said the new subsidiary will “deepen our reach” within the U.S. government sector as it manages a “tidal wave” of internet-connected devices. The U.S. government and its agencies have long been a significant source of revenue for BlackBerry, which has been stressing its expertise in providing highly secure software and services since exiting the smart- phone hardware business.
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SPOTLIGHT ON BUSINESS MAGAZINE • MARCH 2019
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