< Earlier last week, Elon Musk said that TESLA will begin delivering its first china-made model three cars on Monday, December 30th. It’s been a quick turnaround construction of the Shanghai plant, the first factory outside of the US only began in January this year, the production started in October the first, 15 customers who are getting those Tesla Model 3s are Tesla employees, but other deliveries will begin in the coming weeks. It’s pretty remarkable when you consider that the cars being rolled out as quickly as they have when all the problems they had at the plant in California plus they just got this one a 1.3 billion dollar line of credit in China. It’s gonna be interesting to see exactly how successful Tesla is over in China. We’ve heard that some of these Chinese companies that have made electric vehicles which have been popular over the last couple of years they have been the leader in the space that is starting to cool, so we think that right now it is interesting giving the fact that Tesla has been able to keep up pace that we haven’t seen the production abilities that we did here in the US. We just don’t know if we’re going to see the demand that Tesla right now is forecasting over in China. We think that’s the big question we expect around 250,000 production once they’re up and well that’s why they need that line of credit from China, because it’s not just enough to build the factory! we’ve seen that they’ve already been able to produce a vehicle out of that factory but there’s a lot of maintenance cost that going overhead that goes into maintaining that facility in Shanghai now one thing worth noting though is it appears that the Chinese automakers are a little slow to the game here Tesla’s already got its factory built so it was supposed to be that domestic competitor that was gonna give Tesla a run for the money but you look at the share price and it’s very easy to see that they are losing this battle. The real question is going to be if those partnerships like Ford and VW, VW is a huge player in China if they can get an electric vehicle maybe that then bites out of Tesla’s market. Speaking of Tesla’s share it’s trading about $425.
What’s interesting we talk about the fact that the stock is trading at 400 to nine dollars a share we think after he sent out that infamous tweet, what it was a thirteen months ago that funding was secured at four hundred and twenty dollars a share a lot of people once we saw the reaction a lot of people would have said I don’t know so sure that we’ll be able to get back or up to that number let alone surpass it that of course is the case now so we think it’s hard at this point at least to bet against Tesla given what we have seen so don’t forget that at one point year-to-date Tesla stock was down as much as forty percent when the have Exodus or some of those c-suite executives so it’s been quite the the bounce back to get to all-time highs >.
M.B HufNews’s correspondent
