Tesla’s (TSLA) factory in Shanghai, China, is believed to have produced 300,000 cars in the first nine months of the year. Citing sources with knowledge of the matter, Reuters reports that the factory achieved the milestone amid the global semiconductor shortage. TSLA shares rose 2.75% to close at $774.39 on September 24.
Tesla is a U.S. company that designs, manufactures, and sells electric cars. It also develops and sells energy generation and storage systems.
In the first eight months of the year, close to 240,000 vehicles had been shipped from the Shanghai factory. The factory was set up to produce the Model 3 Sedan and Model Y Sport Utility Vehicle (SUV). (See Tesla stock charts on TipRanks)
An official familiar with workings in the Tesla factory believes production could reach 450,000 before the end of the year. About 66,100 of the produced cars will reportedly end up in the export market. Amid the ramping up of production in China, the electric vehicle giant is reportedly facing a string of challenges.
Reuters reports that the U.S. automaker has hired legal and external experts to counter mounting public scrutiny around data security and customer service complaints.
Recently, GLJ Research analyst Gordon Johnson reiterated a Sell rating on the stock. According to the analyst, the automaker sold 12,885 cars in August, which he views as a big problem given that it introduced the made-in-China Model Y SR+ at the beginning of the month and cut prices by 6%. Consequently, the analyst expects the company to sell 59,000 cars in China in the third quarter.
Consensus among analysts is a Hold based on 12 Buys, 7 Holds, and 7 Sells. The average Tesla price target of $690.59 implies 10.82% downside potential to current levels.
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