Tesla plans to close its Fremont, California, plant for upgrades,media reported. When Tesla had to close the plant in March because of a new crown virus outbreak, the company decided to use the plant to upgrade the facility, including adding a tent-shaped structure to a new assembly line, according to industry publication Electrek.
“This strategy follows Tesla’s famous GA4 pipeline, which will be built in 2018, ” the report said. At the time, Tesla was criticized for the unusual move, but the new pipeline helped the company increase its weekly production of the Model 3 to 5,000 vehicles, accelerating the company’s growth. Since March, Tesla’s GA4 pipeline has focused on building model Y cars, not Model 3s. “
Electrek also reported that several Chinese media outlets had reported that Tesla would open a second plant in China, citing inside sources who said the risk of contracting the new crown was on the rise, mainly at the Fremont plant.
In addition, the Texas county government has pledged millions of dollars in tax breaks to Tesla to build its next “super factory” near Austin airport.
Last week, Ryan Brinkman of JPMorgan Chase, the most pessimistic Wall Street analyst on the stock, raised his target price to $295 from $275, based on Tesla’s second-quarter production and shipments data, but kept its rating unchanged at “reduced.” Brinkman also quoted tesla CEO Elon Musk as saying in a recent email to employees that “the break-even looks very difficult.” “
By Wednesday’s close, Tesla’s shares were up 1.93 percent at $1,546.01, well above Brinkman’s target price.