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Tesla’s business is ramping up

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tesla stock

Tesla is looking for new ways to improve its numbers and maintain its leading position in the electric car market. 

Shanghai unit on the rise

As it’s already known, Tesla and several companies were forced to shut down their operations in China due to the problems caused by the pandemic in the Asian territory. However, Tesla’s production line at its Shanghai unit is now up and running, and there has been a significant improvement.

According to Cnevpost, vehicle deliveries for the month of August were 76,965, an increase of 173% over July. A more than positive figure for the company led by Elon Musk.

Production at this plant is skyrocketing. Tesla has had a massive increase in deliveries, as the company reduced the waiting period to receive its Model 3 and Model Y vehicles in the country.

The company has managed to get out of the inconvenience caused by the shutdown quickly, because Tesla’s exports to China have increased for three consecutive months, from 968 in June to 42,463 in August, according to CPCA.

New lithium refinery

The news from the U.S. company does not end there. The electric car maker would also like to establish a lithium refinery in Texas.

Tesla filed an application with the Texas Comptroller’s Office, explaining its intentions with the refinery. The company explained that it will be a battery-grade lithium hydroxide refining facility. It would become the first of its kind in North America, and would be capable of processing “raw ore material into a usable state for battery production.”

Elon Musk has said that there should be more companies in the lithium refining sector, because lithium prices have risen sharply in recent times due to the demand for electric vehicles globally.

The decision to invest in Texas for Musk’s company will depend directly on tax exemptions on local property taxes. In case the application to establish the refinery is approved, construction would begin by the end of 2022. It is speculated that by late 2024, Tesla will already start producing lithium commercially.

Given the current situation of the U.S. electric vehicle manufacturer, analysts are cautiously optimistic about Tesla’s stock. The rating given is “moderate-buy”, considering that the average price is $308.98 and has a potential upside of 6.8%.

What do you think of Tesla’s performance? Do you think the application for the lithium refinery will be approved? Would you invest in shares of this company?

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