Tesla, Inc. (TSLA) has opened a data center and a separate auto research and development (R&D) center in Shanghai – the company’s first outside of the U.S.
According to Reuters, the workforce at the R&D center includes engineers for charging, materials, electronics and software. Tesla produces Model Y sport-utility vehicles and Model 3 sedans in Shanghai.
The California-based electric vehicle (EV) maker will store local operation data at the data center after the Chinese government announced new draft measures last month, under which, companies need to store important industry-related data locally.
Meanwhile, the EV manufacturer’s shares jumped 12.7% on Monday to close at $1,024.86 after Florida-based car rental service provider Hertz Global Holdings, Inc. (HTZZ) placed an order for 100,000 Tesla Model 3 cars for its fleet.
The order also includes new EV charging infrastructure for Hertz’s operations across the world. (See Insiders’ Hot Stocks on TipRanks)
Interim CEO of Hertz, Mark Fields, said, “The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.”
Following the announcement, Wedbush analyst Daniel Ives maintained a Buy rating on Tesla with a price target of $1,100 (7.3% upside potential).
In a note to investors, the analyst said, “While Hertz is in the early stages of electrifying its rental car fleet, Tesla getting an order of this magnitude highlights the broader EV adoption underway as part of this oncoming green tidal wave now hitting the U.S.”
Overall, the stock has a Hold consensus rating based on 12 Buys, 8 Holds and 7 Sells. The average Tesla price target of $781.82 implies 23.7% downside potential. However, the company’s shares have gained nearly 144% over the past year.
According to TipRanks’ Smart Score rating system, Tesla scores a 7 out of 10, suggesting that the stock is likely to perform in line with market averages.
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