Tesla’s Stock Hits 2-Year High Amid China Factory Optimism
Closing at $381.50 USD per share on Monday, Tesla’s stock rose more than 6% to reach a two-year high, ending only a few dollars short of their September 2017 best-ever finish of $385 (via Yahoo! Finance). Analysts at Oppenheimer are crediting Tesla’s largest one-day percentage increase since October to its under-construction China factory.
Tesla has learned “important lessons” from the production ramps for its Model S, Model X and Model 3 and “is implementing best practices in the new factory,” the analysts said in a note.
While highlighted photos of Tesla vehicles produced in the under-construction China factory, the analysts added that expectations for “a relatively smooth ramp” for the Shanghai facility are increasing:
In the near-term “it appears [Tesla] is tracking toward being able to achieve its target for delivering 360k vehicles” for the year, they said. “We note that [Tesla’s] deliveries are highly concentrated toward the end of the quarter and execution over the next two weeks will be critical for 4Q19 results.”
Tesla is expected to report its Q4 deliveries early next month.