Tesla’s Shanghai superplant has been temporarily closed due to the outbreak, but we will soon see it resume production. On February 8, Shanghai held a special press conference of the municipal government, xu Wei, a spokesman for the municipal government, said that the Tesla Factory in the new area of the Shanghai Free Trade Test Zone, which is scheduled to resume production on February 10th.
Lingang New District Management Committee also said that for the characteristics of key production enterprises such as Tesla and the practical difficulties encountered in the resumption of work, will be fully coordinated to help enterprises as soon as possible into production, can be normal production.
Tesla in the outbreak
The outbreak of new coronavirus pneumonia has had an impact on all walks of life, and New Energy Vehicle manufacturer Tesla is no exception. The temporary closure of Tesla’s Shanghai Super plant will have a direct impact on model3 delivery plans.
Tesla’s vice president of external affairs, Dolin, said in a tweet on February 4th that delivery, scheduled for early February, would be put on hold, and that Tesla would try to make up for the delay before the outbreak improved, and that the company was working on plans.
In the face of the outbreak, Tesla has also launched a number of countermeasures, such as the announcement of a full-line vehicle to charge free of charge at a super charging station until the outbreak is over.
On January 30th Tesla announced that it would donate Rmb5m in special funding to help the Chinese government support the CDC and other agencies in response to the outbreak.
With an investment of about 50 billion yuan, Tesla’s Shanghai Super plant is by far the largest foreign-funded manufacturing project in Shanghai, with an annual production capacity of 250,000 pure electric vehicles in the first phase, all of which will be planned to have an annual capacity of 500,000 vehicles after completion and operation. Under the original plan, Tesla’s Shanghai super plant will produce model3s and ModelY. By the end of 2019, the Shanghai Super plant will be operational, with an initial capacity of more than 1,000 vehicles per week. On December 30, 2019, Tesla delivered its first home-made Model 3 to 15 employee owners.
The current domestic Tesla Model 3 was officially delivered on January 7. At present, the subsidized price of the domestic Model 3 has been reduced to $29.905 million.
Share price on the roller coaster
Tesla’s share price has skyrocketed over the while. From $200 to $790, Tesla’s shares have risen 233 per cent in the past six months and more than 70 per cent in the past month.
On February 3rd Tesla rose 19.9 per cent to a record $780 a share. On February 4th Tesla rose another 13.73 per cent to $887.06, giving it a market capitalisation of $160bn.
By February 5, Tesla had opened down 7 per cent, falling as much as 20 per cent at one point in the session and down 17.18 per cent in the day to close, the biggest drop on record. Tesla shares fell 0.12 percent to $748.07 as of the Close of 2000 on Feb. 7, giving it a market capitalisation of $134.8 billion.
Tesla’s fourth-quarter report for fiscal 2019 was again profitable, with net income attributable to common shareholders of $105 million, down 25 percent from a year earlier. Also down was gross margin, down 3.6% year-on-year to 18.8 per cent. The market believes that Tesla’s surge is also a factor, its official announcement that the new new energy SUV model Model Y will be delivered six months ahead of schedule, expected in March this year.
Tesla’s share price has risen to its current level, and even musk, the company’s founder, should short the stock, according to shorting agency, Champs-Elysees. “We love Tesla and promise never to be empty again,” he said. But when computers started to drive the market, we believed that even Elon, if he were a fund manager, would be shorting the stock here. It’s no longer about technology, it’s become the new Wall Street casino. “
Ark Investment, a company focused on investing in disruptive innovations, has released an update to Tesla’s valuation model, which is expected to be worth $7,000 by 2024. The report helped push Tesla’s shares up 36.35 percent for the second day in a row. But on February 4th Ark sold 35,253 shares at its high, cashing in more than $30m at the day’s closing price.
He Xiaopeng, founder of Xiaopeng Automobile, a domestic smart car company, said the difference between cars and mobile phones is huge, making it difficult to form a huge winner-take-all and ultra-high gross margin, so for the time being he has not seen the logic of such a high valuation;
A-share industrial chain is still hot
Despite Tesla’s share price surge, the A-share Tesla industrial chain continues to perform strongly. As of February 5, tesla stocks were up an average of 2.74 percent, according to Wind data.
On January 30, Tesla released its fourth-quarter 2019 results, and in a subsequent conference call, it was clear that the Ninder era would be its partner, details of which will be revealed in Tesla’s “Battery Day” in April. In the early hours of February 3, the Ninder Times announced that the company intends to work with Tesla, Inc. And Tesla (Shanghai) signed an agreement to supply lithium-ion powered battery products to Tesla in the Ninder era. Currently, The Ninder Era, Tesla, Inc. The agreement has been signed and still needs to be signed by Tesla (Shanghai).
BOC International analyst Wei Min believes that with the production capacity utilization rate of Tesla’s Shanghai plant and the continuous increase in the localization rate of parts, domestic Tesla costs are expected to continue to decrease, prices are expected to further explore, promote sales growth, MODELY early production will also add momentum to its sales, supporting the industrial chain is expected to benefit significantly.
Bohai Securities believes that Tesla is the benchmark company of new energy vehicles, the performance of better than expected, the rise in stock prices on the domestic battery industry chain has a certain mapping effect, and Tesla is expected to further enhance the industry chain valuation and performance growth space. Although the sector experienced a certain increase, but the future growth space of new energy vehicles to determine, the follow-up there are still more policies, event benefits to be released.