Tesla tracks higher after Gigafactory Shanghai opens back up; earnings on tap
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Tesla (NASDAQ:TSLA) started production back up at its Shanghai factory after an extended COVID-19 lockdown in the region kept the plant effectively closed since March 28.
There are some reports indicating that employees will be living onsite at the Gigafactory, where they will get catered meals, a small daily stipend, access to showers, and entertainment options. Employees are expected to take a daily COVID test for the first three days and have their temperature taken twice a day.
The Shanghai Gigafactory is estimated to have the capacity to produce 3,400 vehicles a day under normal circumstances. Tesla (TSLA) delivered 310,048 vehicles in Q1 and is forecast to deliver about 330K in Q2, even after accounting for the production halt.
On Wall Street, Credit Suisse reiterated an Outperform rating on Tesla (TSLA) on Tuesday and pointed to strong fundamentals into the earnings print on Wednesday following the market close. The firm hiked its price target to $1,125 from $1,025. "As we raise our target multiples given the increased strategic importance of Tesla as a leader in the global EV transition; we maintain our Outperform rating, with Tesla to benefit from favorable fundamentals in the coming years as outlined in our recent upgrade," updated analyst Dan Levy.
Shares of Tesla (TSLA) moved up 0.73% premarket to $1,011.65. All eyes will now turn to the earnings report from Tesla (TSLA). The electric vehicle juggernaut has topped revenue estimates in nine straight quarters even with all the COVID and supply chain disruption.