Speculations on Tesla’s second car plant in China going strong

More From Author

See more articles

India CEOs Dominating Global Companies: From Microsoft to Chanel...

India-origin executives are redefining global leadership, with 226 leaders of Indian origin now heading the world's most...

Full Form IT in 2025: What are the best...

Full Form IT: The Best Guide IT stands for information technology in its entire form. Computers are utilised...

Full Form of ITI: What does it mean in...

Full Form of ITI: Here's everything to know about ITI Full Form of ITI: ITI is an abbreviation...

Massive speculations are going around that tesla might be building a second car plant in China. However, the sales of the company’s vehicles have been pretty low in the first quarter of 2021. The media has also been criticizing and questioning the company vehicles and the company’s data gathering and storage practices. They have raised concerns about the demand for the technology.

However, some analysts still predict that Tesla may end up exporting more cars from China to Europe. If it does that it will mark a swift reversal of fortunes for Tesla. After the Shanghai auto show, Morgan Stanley’s Adam Jonas acknowledged that investors were dialing back their enthusiasm about the company’s China prospects.

“We expect to see the narrative around Tesla for the remainder of the year to be one word — EXPANSION,” wrote Jonas in an April 22 report. He referred to the possibility the company would go beyond constructing new plants in Texas and near Berlin and could build another factory in China.

However, Tesla is yet to comment anything regarding this new development and the report cited an unidentified person familiar with internal data. China’s Passenger Car Association will release information next week about sales for May.

According to sources, Tesla’s sales of locally made vehicles dropped more than a quarter in April from March. Of the 25,845 vehicles sold, more than half were exported.“We did see a drop in sales. Increasing exports will be a good offset strategy if China’s order growth remains weak, as Tesla’s German factory is still in a delay while production costs are lower in China versus the U.S.”

Tesla shares rose as much as 1.9% before the start of regular trading Friday after plunging 5.3% on Thursday. The stock has dropped 35% from its peak in late January.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

━ Related News

Featured

━ Latest News

Featured