Tesla (TSLA) could surprise with a quicker production ramp than previously expected at Gigafactory Shanghai, based on a new supply chain report.
At the end of last quarter, Tesla reported a production capacity of 250,000 Model 3 cars at Gigafactory Shanghai in China.
Production is expected to grow greatly in 2021 with the start of Model Y production at the factory.
As we previously reported, Tesla has been doing major construction that is resulting in more than doubling the size of the factory.
Now a new report using anonymous sources, including sources within the supply chain, from China’s 36Kr, claim that Tesla is about to surprise us with even higher production.
They state that Tesla plans to produce 550,000 vehicles, including 300,000 Model 3 cars and 250,000 Model Y cars, at Gigafactory Shanghai in 2021.
When Tesla started building its Gigafactory in Shanghai, in an attempt to reassure people that the automaker wasn’t just shifting production capacity to China, CEO Elon Musk was adamant that it would supply local demand in China and not export to other markets.
Earlier this year, reports coming out of China indicated that Tesla changed its mind and was now planning to start exporting made-in-China Model 3 vehicles to other markets.
It was confirmed last month when Tesla shipped out the first 7,000 made-in-China Model 3 to Europe.
Now the report from 36Kr states that out of the 550,000 cars Tesla plans to produce in China next year, they also plan to export “about 100,000 Model 3 units and 10,000 Model Y units.”
It is unclear where those Model Y vehicles are going to be exported as Tesla has previously said that they would introduce the Model Y in Europe when they would start producing it at Gigafactory Berlin.
Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products.
The Company operates through two segments: Automotive, and Energy generation and storage.
The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles.
The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers.
The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market.
It develops energy storage products for use in homes, commercial facilities and utility sites.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 490.73.
The projected lower bound is: 350.94.
The projected closing price is: 420.83.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 72.0207. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.20. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 47 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 85. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -8.690 at 421.260. Volume was 100% below average (consolidating) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume 439.500 452.500 421.000 421.260 41,477
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 416.43 422.30 254.03 Volatility: 67 110 115 Volume: 25,905,876 56,698,260 77,830,928
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TESLA INC is currently 65.8% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 6 periods.