Tesla’s weekly performance in Shanghai rose to 70% of pre-lockdown levels.
With inflation on the rise, major car manufacturers suffered losses as investors were cautious about the auto industry.
Tesla (NASDAQ : TSLA) shares were no exception, and are down 36.7% year-to-date as a result of the current market sell-off. Investor suspicions have also been heightened by the company’s CEO Elon Musk’s decision to acquire social media giant Twitter (TWTR).
At the moment, Tesla is making every effort to restore production, which has suffered due to the lockdown in China. According to Reuters, weekly production resumed 70% of the level that was before the restrictions began.
Giga Shanghai has begun assembling about 2,600 electric vehicles a day. Also last week, a second shift of workers was added, which is expected to increase production.
The facility was stopped for 22 days during a lockdown in China, then was again launched on April 19 in a “closed system” mode, when employees lived in production, as they were forbidden to go outside.
Demand for Tesla cars is expected to decline, as evidenced by data from the Chinese Passenger Car Association. At the end of April, 10,757 Tesla cars were produced, while 1,512 cars were sold.
Expansion of production in the European region.
In addition, Tesla (TSLA) plans to expand production at the Giga Berlin plant. The capacity of the Giga Berlin plant was about 500,000 vehicles per year. The existing Tesla Giga Berlin complex is located on 300 hectares, it includes an automobile plant, and a battery factory. It is planned to build additional capacities on the territory of the complex.
Good prospects for long-term profits give hope to investors.
For most experts, opinion on Tesla shares converges and has a “Moderate Buy” rating.
At the time of writing, Tesla (TSLA) shares are trading for $759.63.
Tesla’s average price target is $959.37, or an increase of 26.29%. The stock has gained 21.76% over the past year.
Tesla’s expansion of capacity at the Giga Berlin plant could add additional revenue to the company and improve plant efficiency.Thereby, investors can bet on Tesla’s stock based on Tesla’s current developments, rising prices, high analyst ratings and long-term prospects.
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