Electric vehicle pioneer Tesla (NASDAQ:TSLA) is moving forward with its megapack battery plant in Shanghai, China. According to Reuters, the company has already acquired the necessary land parcel for the facility, and production is anticipated to commence in the fourth quarter of 2024.
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The acquired land is located in proximity to an existing plant that produces Model 3 and Model Y vehicles. Reportedly, Tesla shelled out nearly $31.1 million for the rights to the 19.7-hectare plot. Once completed, the battery plant is expected to produce 10,000 megapacks annually. Tesla’s Shanghai Gigafactory has an annual capacity of 1.1 million vehicles.
This development comes fresh on the heels of Panasonic Energy, a key Tesla supplier, dropping plans to set up a new battery plant in Oklahoma. The supplier currently operates two battery facilities in Kansas and Nevada.
While Tesla rapidly expands its footprint in China, the country’s EV giant, BYD (HK:1211) (OTC:BYDDF), is widening its global reach. The company is planning to set up a new electric car factory in Hungary. It already operates a bus manufacturing facility in Hungary and is looking to become a dominant force in the European EV market by 2030.
Meanwhile, Tesla is facing a potential vehicle recall over suspension failures in its vehicles in Norway. Additionally, a Reuters investigation highlighted that Tesla had prior knowledge of more frequent defects in its vehicles than it chose to disclose. Moreover, Tesla blamed vehicle breakdowns and component failures on drivers, as it faced ballooning warranty costs.
What is the Forecast for Tesla Stock?
Despite recent selling pressure, Tesla shares still remain nearly 103% higher over the past year. Overall, the Street has a Moderate Buy consensus rating on Tesla, and the average TSLA price target of $247.39 points to a 2.8% potential downside in the stock.
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