Tesla (NASDAQ:TSLA) shares are under pressure today due to reports that the EV pioneer has lowered its output target at its German plant owing to sluggish production, according to Reuters.
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The company has reduced the output target at the Gruenheide plant to 4,350 vehicles per week for July and August and is possibly planning to lower it further. In comparison, the plant produced 5,000 vehicles in March.
Furthermore, according to a Business Insider report, the company had aimed for a production of 870 vehicles a day in July and August but managed to produce only 602 vehicles on July 25. Since then, it has scaled back the production target to only 750 vehicles a day.
In recent times, Tesla has implemented multiple price cuts across major markets, offered discounts and incentives to clear inventory, and introduced cheaper vehicle versions amid stiffening competition and rising economic turmoil. Last month, the company unveiled plans to expand production capacity at its Gruenheide facility to one million vehicles a day but has not offered a timeline.
Morgan Stanley’s Adam Jonas has reiterated a Hold rating on the EV major alongside a $250 price target. Canaccord Genuity’s George Gianarikas is more optimistic, giving the stock a Buy rating alongside a $293 price target.
Overall, the Street has a consensus price target of $253.77 on Tesla, accompanied by a Hold consensus rating. Shares of the company have surged nearly 114% year-to-date.
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