By Kuldip K. Ambastha and Anil K. Ambastha
On Friday, January 3, 2020, Tesla, Inc. (TSLA) delivered a gain of 3.0% closing at an all-time high of $443.01 per share due to positive news. Intra-day, the share price reached as high as $454.00 per share. Tesla beat Wall Street estimates for both car production and delivery during its fourth quarter, and also cut the starting price for Model 3 sedans built in China. Beginning on Tuesday, January 7, 2020, Tesla Model 3 sedans made in China will start to be delivered. The Chinese factory is Tesla’s first factory ever outside of the USA, and points to Tesla’s intention of attempting to succeed in a place which is considered the world’s biggest automobile market. Manufacturing in China specifically for Chinese individuals has allowed Tesla to bypass tariffs, but it is still uncertain if Tesla will become profitable for the long-term. This is especially true in light of the fact that the Chinese government in the recent past has been reducing subsidies for electric vehicle production. The Chinese factory has been able to meet its production target of 1,000 units per week, and Tesla will be doubling its number of service centers and fast-charging stations in China over the course of 2020. Tesla has done well in Europe also and plans to build a plant in Berlin, Germany.
Keywords – Tesla, Inc., Tesla, TSLA, Elon Musk, Tesla Model 3, sedan, automobile, auto, car, China, Chinese, USA, American, factory, tariffs, market, profits, long-term, subsidies, electric vehicle, EV, vehicle, production, unit, service center, fast-charging station, charging station, 2020, Europe, European, all-time high, Berlin, Germany.
Disclosure – The principals and clients of Ambastha Financial LLC do not have any positions in TSLA.
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