As Tesla (NASDAQ:TSLA) prepares to return to work, investors are now carrying on a bullish stance on the company’s inventory. Reports indicate that Tesla is planning to bring employees back to its principal vehicle production facility in Fremont, California, this week. The business is reportedly intending to restart its paint and stamping division first, as per Barron’s. Further operations in Fremont, Giga New York, and Giga Nevada are predicted to be resumed May 4.
The company could begin the process of updating the Fremont factory’s South Paint Shop. Tesla applied for permits to update the facility’s HVAC and fire protection in late April. Bringing these employees back might help start the procedure for updating some of the Fremont plant that has given the automaker challenges previously.
In general, it appears that Tesla’s initiative to begin bringing employees back to Fremont is supporting analysts to maintain a favorable outlook on TSLA inventory. This view is becoming more and more apparent following the automotive sector has taken a hit on account of the COVID-19 pandemic. In spite of this, Tesla has up to now turned out to be an outlier, exhibiting impressive shipping and production leads to the initial quarter.
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Dan Ives, an analyst at Wedbush, expressed his thoughts. “Bringing back employees ahead of a possible Fremont mill restart May 4 is an clear feather in the cap for the bulls. It appears the delivery demand is still there regardless of this economic abyss and speaks with Tesla attempting to meet orders,” Ives mentioned.
Despite the fact that Tesla hasn’t had a production line building vehicles in the United States for a month today, the business is delivering cars to customers such as the Model Y crossover. Following the company released its shipping figures for Q1, analysts are interested to see what the corporation can manage to pull off for Q2. The organization ’s Gigafactory Shanghai center is producing the Model 3 for the Chinese industry.
Tesla’s existence in China has helped the inventory, but the company’s push to return to perform in Fremont appears to prove that demand for its automobiles continues to remain consistent. Tesla’s deliveries of the Model Y largely flew under the radar due to the pandemic. Nonetheless, the electrical automaker appears to focus its efforts on ramping up its production lines again to get back on course for its quarterly and yearly targets.
Tesla’s Q1 2020 earnings call is scheduled for Wednesday, April 29, 2020, at 3 PM PST.
As of this writing, Tesla inventory is trading +8.38percent at $785.93 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate some positions.
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