This year, Tesla plans to produce as many as 150,000 Model 3 at its Shanghai facility. Currently, Tesla makes around 11,000 units per month.
Last month, electric vehicle maker Tesla Inc (NASDAQ: TSLA) changed its initial plans on delivering Model 3 cars made in China, saying it would significantly expand the export geography. Now, the company is starting to export Model 3 vehicles to Europe, with other Asian countries, Australia, and New Zealand joining later.
When building the Gigafactory in Shanghai, Tesla CEO Elon Musk was adamant that it targeted at supplying local demand in China without exporting to other markets. His assurance was important as the factory was announced amid the US-China tensions. But in September, Tesla indicated it had changed its mind.
Notably, some were saying about China-made Tesla cars being better than those produced in Fremont. Therefore, Tesla updated its Model 3, adding several new features and improving the design. The changes included a new headliner and a revised center console that features matte black trim, chrome accents, and a sliding door that echoes the one used in the Model S and Model X. Besides, Tesla has completely updated the Model 3 wheel lineup with slightly updated 18″ and 19″ wheel designs that added the new 20’’ Überturbine Wheels to the sedan. All Model 3 versions have also received quicker 0-60 mph accelerations.
As for the pricing, Tesla Model 3 is currently available to order for $37,990.
This year, Tesla plans to produce as many as 150,000 Model 3 at its Shanghai facility. Currently, Tesla makes around 11,000 units per month. The company is also expanding its manufacturing capacity to make the Model Y sports-utility vehicles. In addition, it is building out the capacity to make more battery packs, electric motors, and motor controllers.
Compared to 2019, electric vehicle sales have more than doubled in Europe between January to July of this year. But the growing demand will lead to tough competition from the VW Group, Renault, and the PSA Group.
Tesla Stock Ceding Ground
Tesla stock has lately been declining. On Friday, it closed 2.05% down, at $439.67 per share. In prolonged trade, Tesla shares lost another 0.22% to $438.70. Tesla market cap totals $410.45 billion. Year-to-date, Tesla stock is 425.51% up.
Despite the downturn, analysts are betting on Tesla stock and even raising its price target. For example, Goldman Sachs Group Inc (NASDAQ: GS) has recently lifted its price target for Tesla shares from $400 to $450 while maintaining the ‘Neutral’ rating for the stock. As Goldman Sachs analysts have explained, they believe that Tesla will report strong Q3 2020 results. The company will release the report on October 21. According to Goldman Sachs, it will be impressive due to electric vehicle adoption, margins, and market share all increasing.