Tesla (NASDAQ:TSLA) will build a new factory in Shanghai that will have the capacity to produce 10,000 Megapack battery units annually. The EV giant expects to begin the construction of the plant in the third quarter of this year and subsequently start production in the second quarter of 2024.
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These batteries can store power from renewable sources, such as solar and wind, and can be used to prevent power outages by stabilizing energy grids. It is worth mentioning that the Energy Generation and Storage segment accounted for 5.4% of Tesla’s total revenues as of December 2022.
Tesla’s CEO, Elon Musk, anticipates that the new factory will complement Tesla’s existing Megapack plant located in California with an output capacity of 10,000 units.
With the new Shanghai plant, Tesla will further strengthen its presence in China. The company already has a car production factory on the outskirts of Shanghai, which accounts for a sizeable portion of its global car deliveries.
Is Tesla Stock a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about Tesla, with a Moderate Buy consensus rating based on 19 Buys, 10 Holds, and three Sells. The average price target of $219.57 suggests upside of 18.7%.
