Tesla (NASDAQ:TSLA) has started constructing a factory in Shanghai to manufacture its Megapack energy storage batteries, according to Chinese state media. This plant, worth $200 million will be located in Shanghai’s Lingang free trade zone and will be its first battery plant outside the U.S.
The EV major’s EV plant was opened in Shanghai in 2019 and assembles cars for China, Europe, and other markets. Tesla is China’s second-largest EV seller after BYD (OTC:BYDDY). China’s state-run Xinhua News Agency stated that the new factory will likely start mass production early next year, and will have an initial capacity of producing 10,000 Megapacks annually.
According to Tesla’s website, each Megapack stores over 3.9 megawatt-hours of energy, enough to power 3,600 homes for one hour, and is intended for utilities and commercial use.Chinese state media has reported that the company has begun construction on a Megapack Battery Factory in Shanghai.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on nine Buys, 15 Holds, and nine Sells. Year-to-date, TSLA has declined by more than 25%, and the average TSLA price target of $174.60 implies a downside potential of 0.8% from current levels.
