Alleviating investor fears, more than 80% of production has been resumed at Tesla’s (NASDAQ: TSLA) Shanghai Giga Factory, as reported by Chinese officials.
Tesla, which was part of the first whitelist of companies to resume work in Shanghai, has re-opened the factory in a “closed-loop system.” It indicates that employees are staying at the unit and are not allowed to go out.
Additionally, according to Zhang Hongtao, chief engineer of the Shanghai Economic and Information Technology Commission, the second list of 1,188 companies has also been prepared to resume work. These companies are part of main sectors, which include integrated circuits, automobile manufacturing, equipment manufacturing, and biomedicine.
“We are ramping up efforts to help companies solve difficulties in resuming production,” Zhang commented.
Analyst Recommendations
Recently, Robert W. Baird analyst George Gianarikas initiated coverage on Tesla with a Buy rating but did not assign a price target.
In a note to investors, Gianarikas said, “As Tesla resumed production on April 18 [in China], we expect EV deliveries to be up [month-over-month] relative to an April dud but subdued overall levels.”
“We await additional data points around COVID restrictions in China to better understand future trends,” the analyst added.
The rest of the Street is cautiously optimistic about the stock, which has a Moderate Buy consensus rating based on 14 Buys, eight Holds, and five Sells. The average Tesla price target of $975.5 implies 8.04% upside potential. Shares have gained 31.84% over the past year.
Bloggers Weigh In
Bloggers seem enthused by the company’s developments. TipRanks data shows that financial blogger opinions are 78% Bullish on TSLA, compared to a sector average of 68%.
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