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Tuesday, 28 April 2020 16:42

Tesla Stock Surges Amid CA Factory’s Impending Restart of Production

Written by Joey Klender, Teslarati

As Tesla prepares to get back to work, investors are taking on a bullish stance on the company’s stock.

Reports indicate Tesla is planning to bring back workers to its main vehicle production facility in Fremont, CA, this week. The company is reportedly aiming to restart its paint and stamping department first, as per Barron’s.

 

Further operations in Fremont, Giga New York and Giga Nevada are expected to be restarted May 4.

 

The company’s attempts to bring back paint workers could begin the process of updating the Fremont factory’s South Paint Shop. Tesla applied for permits to upgrade the facility’s HVAC and fire protection in late April. Bringing these workers back could help start the process of updating a portion of the Fremont plant that has given the automaker challenges in the past.

 

Overall, it appears Tesla’s initiative to gradually begin bringing back workers to Fremont is encouraging analysts to maintain a positive outlook on TSLA stock.

 

This perspective is becoming increasingly apparent after the entire automotive industry has taken a big hit due to the COVID-19 pandemic. Despite this, Tesla has so far proven to be an outlier, exhibiting impressive delivery and production results in the first quarter.

 

“Bringing back workers ahead of a potential Fremont factory restart on May 4 is a clear feather in the cap for the bulls," said Dan Ives, an analyst at Wedbush. "It appears the underlying delivery demand is still there despite this economic abyss and speaks to Tesla looking to fulfill domestic orders."

 

Even though Tesla has not had a production line actively building vehicles in the U.S. for a month now, the company is still delivering cars to consumers, including the Model Y crossover.

 

After the company released its above-expected delivery figures for Q1, analysts are interested to see what the company can manage to pull off for Q2.

 

Apart from this, the company’s Gigafactory Shanghai facility is in full operation, producing the Model 3 for the Chinese market.

 

Tesla’s presence in China has certainly helped the stock, but the company’s push to get back to work in Fremont seems to show demand for its vehicles continues to remain consistent.

 

Tesla’s initial deliveries of the Model Y largely flew under the radar because of the pandemic. Still, the electric automaker seems to focus its efforts on ramping up its production lines once again to get back on track for its quarterly and annual goals.

 

Tesla’s Q1 2020 earnings call is scheduled for April 29 at 3 p.m. PST.

 

As of writing, Tesla stock is trading +8.38% at $785.93 per share. 

 

We thank Teslarati for reprint permission. 

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