Tesla Inc. (TSLA) plans to invest an additional $187.91 million (1.2 billion yuan) to expand its Shanghai factory. According to Reuters, the investment will boost its production capabilities and create jobs for 4,000 workers. Shares of the electric vehicle (EV) maker closed at $1,116 on November 25.
The report cited the Beijing Daily newspaper as a source, which attributed its information to a Shanghai government platform for companies’ environmental information disclosures.
Tesla submitted a filing on the platform on November 23, which showed its intent to further invest in the facility. The additional employment will increase the total number of staff to 19,000.
Notably, neither were any model changes indicated in the document nor was any detail given about the ramp-up in production.
Currently, the Shanghai factory can annually produce up to 450,000 cars of its Model 3 and Model Y, and boasts of a full production capacity of 500,000 cars per year. As of now, the facility ships China-made Model 3s to Europe, Tesla is also building a factory in Germany to suffice the demand.
As per China Passenger Car Association data, in October this year, Tesla sold 54,391 China-made vehicles, including 40,666 for export. Tesla’s China factory is the only wholly owned passenger car plant by a foreign entity, with the exemption of being operated by a joint venture.
The Wall Street Community has a Hold consensus rating on the TSLA stock based on 10 Buys, 6 Holds, and 7 Sells. The average Tesla price target of $887.38 implies 20.5% downside potential to current levels. Shares have gained 90.5% over the past year.
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TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into TSLA’s performance.
In October, Tesla website traffic recorded a 13.17% year-over-year decline in monthly visits. However, year-to-date website traffic growth increased 1.72% compared to the same period last year.
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