Contributing Writer | Telegraph Local
Telsa has released its first China-made cars at their brand new factory in Shanghai this Monday. Telsa employees received the first 15 Model 3 vehicles to ever be assembled on site. The billion-dollar factory is the first of Telsa’s locations to be built outside of the US. Just two months ago, Telsa again gave out the first line of Model 3s to employees at their California location. Telsa hopes to continue to increase production to keep up with the increase in demands.
Tesla saw a huge quarterly profit turn towards the end of October. Investors continue to see the upside despite the problems that slowed down production earlier in the year. It seems Telsa was able to work out the kinks and outperform all other electric vehicles. With the Shanghai location already producing over 1,000 Model 3s, Telsa plans to double the pace in 2020, according to Song Gang, the director of the Shanghai location. In the market, Tesla shares have begun to plunge by 4.9% on Monday. Trading is down 4% as well. Despite the few problems, Telsa stock is still up by almost 62% since the announcement of their third-quarter reports in October.
Many analysts are skeptical of Telsa’s willingness to heed to the demand. One of the most vocal is Jeffery Osborne, an analyst for Cowen & Co., thinks Telsa will not meet their own goals and fall short. Osborne predicts the interest and popularity of the Model 3 will soon fade.“The large amount of over-exuberance related to the demand for Tesla’s products in the mid to long term has increased over the past few months, and we believe much more successful penetration is baked into the stock than is likely to play out,” Osborne wrote in a report. Osborne continued, “While Tesla has built a very dedicated fanbase that has been willing to excuse poor build quality, customer service, and service infrastructure, we continue to be skeptical around broader adoption.”
Telsa plans to give more workers Model 3s over the coming days. The first customer deliveries will begin to go out towards the end of January. The Shanghai location is just the starting point for Elon Musk’s goal to make Telsa a global carmaker. Elon Musk looks to expand to Europe by building a factory in Germany. With China being the largest market for cars, Telsa will have its work cut out for them. Model 3 is looking at stiff competition from China’s local car manufacturers. According to reports, the demand for the Telsa Model 3 car in China is fairly good. “Our aim is to kill all internal-combustion engine cars,” Allan Wang, general manager of Tesla China, said in a statement. While the first customer delivery has yet to go out, this marks a year of milestones in Telsa and Elon Musk’s career.