Tesla Boosts Production in China
Tesla plans to increase production at its Shanghai plant in February and March to meet the demand created by its aggressive price cuts on its most popular models. The automaker aims to produce a weekly average of nearly 20,000 vehicles at its Shanghai factory. This level of production would bring the plant’s output to its September rate, when it produced 82,088 Model 3 and Model Y cars.
In December, the Shanghai plant cut output by about a third from November and extended the Lunar New Year holiday period for workers in January to cope with rising inventory. The price cuts, which ranged from 6% to almost 14%, are believed to have sparked a price war among Chinese automakers such as Xpeng and Seres’ Aito. As a result, Tesla’s average daily retail sales in China rose 36% in the first 29 days of January compared to the same period the previous year, reaching 25,686 vehicles. The growth was slightly higher than that of major competitor BYD while overall car sales in China fell 45%. The Shanghai plant produces vehicles for both the Chinese market and for export to Europe.
TSLA Stock Price Forecast & Analysis
Tesla Inc’s stock has received strong buy ratings from the majority of analysts, with an average target price of USD 250.64 over the next 12 months.
According to Stock Target Advisor, the company’s stock analysis is slightly bullish, with 10 positive signals and 6 negative signals. Despite the bearish trend over the last year, with a decrease of 44.52%, Tesla’s stock price has experienced significant growth in the past month and week, rising by 40.62% and 20.38% respectively. As of the last closing, Tesla’s stock price was recorded at USD 173.22. These positive changes in the stock price could be due to the recent surge in average daily retail sales in China, as well as the company’s plans to increase production at its Shanghai plant in the coming months.
