Tesla Factory Check: Model 3 Activity Picking Up
Shares of Tesla Inc (NASDAQ: TSLA) were trading higher by nearly 4 percent Thursday morning following reports that the electric automaker is set to begin production of the much anticipated Model 3 vehicle.
If Tesla's stock holds on to the strong pre-market gains, it would open Thursday's session ahead of its 52-week high of $269.34. The stock is up already more than 20 percent since the start of 2017.
According to Reuters, Tesla said it will undergo a "brief" and "planned" pause in its California assembly plant for one week this month to prepare the factory for the high-volume Model 3 sedan.
"This will allow Tesla to begin Model 3 production later this year as planned and enable us to start the ramp towards 500,000 vehicles annually in 2018," a Tesla spokesman told Reuters.
Analyst's Check Validates Report
Trip Chowdhry of Global Equities Research oversaw first hand checks at and around Tesla's Fremont factory, which has been operating 24 hours a day seven days a week.
Chowdhry also noted that the required equipment to manufacturer the Model 3 sedan has arrived. Specifically, there are makeshift tents that are storing the Model 3 production equipment.
Latest Ratings for TSLA
|Mar 2017||Deutsche Bank||Maintains||Hold||Hold|
|Mar 2017||Bernstein||Initiates Coverage On||Market Perform|
|Feb 2017||Goldman Sachs||Downgrades||Neutral||Sell|
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