Tesla, Inc. (NASDAQ:TSLA) China production to start, eyes on mass production timing

Tesla, Inc. (NASDAQ:TSLA) China production to start, eyes on mass production timing

Tesla, Inc. (NASDAQ:TSLA) China production to start, eyes on mass production timing

Tesla (NASDAQ:TSLA) Inc’s China factory aims to start production this month but it is unclear when it will meet year-end production targets due to uncertainties around orders, labor and suppliers, sources with knowledge of the matter said.

The U.S. electric vehicle maker aims to produce at least 1,000 Model 3s a week from the new factory by the end of this year, the centerpiece of its ambitions to boost sales in the world’s biggest auto market and avoid higher import tariffs imposed on U.S. cars.

The plant’s mass production schedule is crucial for Tesla’s hopes of reaching its total production rate at an annualized 500,000 vehicles by the end of this year.

The $2 billion factory – Tesla’s first car manufacturing site overseas – gained key government approvals last month and is on schedule to start production in October, the sources said.

“We aim to start some production in October, but the actual production volume depends on many factors including car orders we received, performance of newly hired workers, supply chain and so on,” a Tesla source told Reuters.

“It’s unclear when we can reach the 1,000-2,000 units per week target,” the person said, declining to be named as he was not allowed to speak to media.

Tesla did not respond to requests for comment.

The factory is kicking into gear amid the U.S.-China trade war and weakness in China’s auto market. Sales of new energy vehicles contracted for a second month in a row in August, and are likely to grow at a slower pace this year to 1.5 million vehicles, down from a previous forecast of 1.6 million, according to an industry association.

Tesla has fared better, with China sales rising 98% in the first seven months of this year thanks to strong demand for Model 3, according to research firm LMC Automotive.

Tesla also is looking to hire battery-related production engineers in Shanghai, according to its job advertisements.

The plant, which Tesla says will be simplified and more cost-effective than its existing Model 3 line, will have 500,000 units of annual capacity when the second phase is completed, doubling from initial phase capacity of 250,000 vehicles.

The factory, China’s first fully foreign-owned car plant, is a reflection of Beijing’s broader shift to open up its car market.

Shanghai authorities have offered assistance to speed up construction, and China excluded Tesla models from a 10% car purchase tax on Aug. 30.

State partners of the Tesla project include Shanghai Construction Group, China Construction Industrial & Energy Engineering Group, State Grid [STGRD.UL], Power Construction Corporation of China, and MinMetals’ [CHMIN.UL] Shanghai unit Baoye, according to multiple sources involved in the construction project.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 236.05.

The projected upper bound is: 268.02.

The projected lower bound is: 220.92.

The projected closing price is: 244.47.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 79.7474. This is not an overbought or oversold reading. The last signal was a buy 4 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 56.87. 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 32. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 3.820 at 244.690. Volume was 25% below average (neutral) and Bollinger Bands were 32% narrower than normal.

Open     High      Low     Close     Volume___
241.500 245.950 239.130 244.690 6,196,290
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 239.41 232.87 259.87
Volatility: 64 63 62
Volume: 7,773,895 7,039,313 9,037,902

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.

Summary

TESLA INC is currently 5.8% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and

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