Tesla (TSLA) presented a small number of Model Ys during the opening of its Texas manufacturing on Thursday night. Meanwhile, the EV maker is still dealing with a plant closure in Shanghai caused by an increase in Covid cases. Tesla will also need to release a safety-related software update to fix a semiconductor component on more than 127,000 Model 3s, according to Chinese officials. Tesla’s stock climbed a smidgeon on Thursday.
The Cyber Rodeo event in Austin commemorated the start of Tesla’s $1.1 billion facility in Texas.
Tesla’s new structural battery pack and 4680 battery cells will be featured for the first time in Giga Austin Model Ys. It’s unclear whether the new battery packs, which are a bigger, cylindrical cell that Tesla claims delivers six times the power and five times the energy capacity while decreasing cost, would be included in all Model Ys made in Austin.
At Thursday’s ceremony, CEO Elon Musk spoke for less than 30 minutes before several Model Ys were driven across the stage. After that, Tesla’s Cybertruck made an appearance, with Musk pointing out a new feature: it doesn’t have handles because it supposedly knows when the driver is around. Tesla aims to start producing the CyberTruck next year, according to Musk.
“This year is all about scaling up,” he stated, adding that “next year there will be a big surge of new items.” For next year, Musk also mentioned the Roadster and Semi.
Once volume production is accomplished, the Texas factory, along with the new Berlin complex, is expected to double Tesla’s yearly production capacity to 2 million vehicles.
That won’t be simple, as chip shortages and other supply-chain issues continue to wreak havoc on the car industry as a whole.
Shanghai Factory Closure Extended
Covid cases are also wreaking chaos at Tesla’s Shanghai facility, which has been closed since last week due to government regulations. It is now expected to reopen on Friday at the earliest. This week, the corporation attempted to restart manufacturing twice but was unable to do so. The closure appears to have been prolonged indefinitely by Chinese authorities.
By Friday, Tesla Shanghai will have been closed for 12 days, the longest outage since the company began production there in 2019. In Shanghai, the company produces roughly 2,000 vehicles every day.
Meanwhile, Chinese officials announced that Tesla would issue a software update to 127,785 Model 3s via an over-the-air update. Between January 2019 and January 2022, the problem impacts both made-in-China and imported automobiles.
“The issue is with the semiconductor component,” the State Administration for Market Regulation (SAMR) stated in a statement, according to a local report. “In some extreme cases, this could lead to potential collisions and represent a safety danger.”
On the stock market today, shares rose 1.1 percent to 1,057.26. According to MarketSmith chart analysis, Tesla stock has a cup-base buy point of 1,208.10. Following a 32 percent gain since mid-March, stocks have taken a respite in recent days amid a market sell-off.
Tesla’s relative strength line has also risen in recent weeks, albeit it has been trending downward in recent days. It has an RS Rating of 95 out of a possible 99, and an EPS Rating of 75. Tesla is the top-ranked stock in IBD’s Auto Manufacturers industry category, with a Composite Rating of 98.
It has an A- Accumulation/Distribution Rating, indicating that institutional investors are buying Tesla stock in large quantities.
Nio (NIO) declined 6.1 percent, Li Auto (LI) down 4.1 percent, and Xpeng (XPEV) fell 2.8 percent among Tesla’s Chinese rivals. BYD (BYDDF), which is funded by Warren Buffett, was up 0.1 percent.
In the United States, Lucid (LCID) and Rivian (RIVN) both decreased 2.9 percent and 0.3 percent, respectively. General Motors (GM) lost 2%, while Ford (F) fell 2.8 percent, as legacy automakers with expanding EV sales.