Soon, Tesla Inc. may announce a record
Tesla Inc. (TSLA) by the end of April may enter the production of 1,000 electric vehicles per week. For Tesla, this is not only an important competitive advantage but also a way to reduce risks in the Chinese market. On Wednesday, investors will expect Tesla’s forecasts for the current year, as well as optimistic statements that may affect the quotes.
In the fastest growing market, China, Tesla’s production stopped for three weeks because of COVID-19, so the company is unlikely to meet production targets. But, the pace of production at the new Tesla plant in Germany continues to increase. The plant in Germany should significantly reduce Tesla’s logistics costs in the promising European electric car market, which is growing faster than the American one.
Production is also expanding at a new plant in Texas. Although there are always problems at the newly opened production, the company can report good news in a report on Wednesday, and by the end of the month it will reach the psychological mark of a thousand cars produced weekly. Traditional automakers still have problems with expanding their share in the fast-growing electric vehicle market.
That is why it is so important for Tesla to increase production volumes in order to keep and expand its leadership. In addition, demand for Tesla brand cars is still high, and in the first quarter the company increased deliveries by 68% year-on-year.
However, because of the shutdown of the Shanghai plant, the consistent growth was only 1%. Thus, Tesla may show a temporary slowdown in supply volumes, but the positive dynamics of the company remain. Production rates are growing rapidly and consumers remain interested in the brand.
