Tesla to raise funds for its China factory

Tesla Inc is looking to raise a portion of the $5 billion it needs to build its factory in Shanghai from local Chinese partners, Bloomberg reported here on Wednesday, citing a source familiar with the matter.

Chief Executive Officer Elon Musk last month landed a deal to build the company's first plant outside the United States that would double the size of the electric car maker's global manufacturing. “We expect some funding to be from China investors, but expect international (including the US) funding to be needed too,” CFRA analyst Efraim Levy said.

Tesla did not respond to a Reuters request for comment. China is the largest market for electric vehicles, and analysts predict that electric vehicle sales in the country will accelerate rapidly as government regulations aimed at having 100 percent electric vehicles by 2030 roll out.