Tesla iconic Model 3 that is being built in China with a longer range is about to start rolling out of Giga Shanghai.
The iconic Model 3 that is rumored to drive over 400 miles on a single charge is rumored to start hitting Chinese market within days. Yes!, within days.
Citing people familiar with the matter, Bloomberg reported that the new iteration of the vehicle, which will come with a higher price tag, should begin rolling off the assembly line within days.
Last month, Tesla said it has started to produce about 3000 vehicles per week in its Giga Shanghai plant.
Jefferies Analyst Philippe Houchois expects Tesla sales to rise 27% in 2020, ahead of Wall Street’s consensus estimates of 20% growth. Houchois upgraded Tesla to a BUY with a $650 price target.
The Tesla Thesis
In the note, Houchis said COVID-19 and slumping gasoline prices will make the near term a difficult road for Tesla. However, he said the company had four major advantages in the long term:
As the auto industry transitions to electric over time, Tesla will not have to deal with the upgrade costs that the legacy automakers do.
Not only is Tesla gaining market share from legacy automakers, EVs are a positive-sum game.
Tesla is roughly “doubling market coverage with Model Y.”
Tesla is leading an auto technology revolution.
Despite his bullish long-term outlook, Houchois said Tesla investors should expect some challenging 2020 numbers after the company reported 88,400 vehicle deliveries in the first quarter.
According to Bloomberg, The vehicle would have a range of more than 650 kilometers (404 miles) on one charge, compared with about 450 kilometers for the current most basic version that starts at 323,800 yuan ($45,800), the people said, asking not to be identified as the information isn’t public. The variant would start at about 350,000 yuan before rebates, though exact pricing has yet to be decided, they said.
Tesla Battery Day and Q1 earning reports is around the corner.