Tesla Inc. (NASDAQ:TSLA) means business in pursuit of growth opportunities in the vast Chinese electric car market. The electric vehicle giant is expanding its Gigafactory in the city of Shanghai with the construction of new buildings. The tech giant also plans to appoint a new design director, tasked with leading the Chinese arm of the emerging business as a key component.
Construction of the Gigafctory in Shanghai started in 2019. With the first phase complete, Tesla has ramped up production, conversely meeting the ever-growing demand for its electric autonomous cars in the Chinese market.
Last year, the Chinese manufacturing plant produced more than 140,000 cars allowing Tesla to meet and exceed its production targets. While the Shanghai plant did produce Model 3 in 2020, Tesla is looking to retool the plant as it seeks to shift focus to Model Y, whose deliveries could start as early as this month.
Production of Model Y would be made possible by the fact that the Shanghai plant has more than doubled its production capacity. Expansion with new buildings is expected to take production to new heights as Tesla looks to affirm its status as the poster child of electric and autonomous cars.
Design Director Appointment
In what could be seen as an attempt to pursue the Chinese market in full throttle, Tesla is looking for a design director. The design director will be tasked with spearheading electric cars’ designs specifically tailored for Chinese consumer tastes.
The appointment of a design director comes hot on the electric giant’s heels taking design submissions for Chinese-made small electric cars last year. In addition, the head of the design team in China will help bridge the gap with the U.S team.
Tesla is looking to develop a $25,000 electric car tailored for the vast Chinese market. In addition to being electric, the car will be fully autonomous as Tesla looks to address the growing demand for electric autonomous cars in the Chinese market. The automaker should achieve the ambitious price point thanks to a new battery cell technology and battery manufacturing effort.
The ramping up of production efforts is one reason why Tesla stock is flying high in the market. After a breathtaking 2002 that saw the automaker smash records, the stock raced to record highs, conversely becoming the 6th largest public traded company by market cap.
Valued at over $834 billion, Tesla does not show any signs of slowing down and could be in for another record breaking year. Investors’ confidence in the stock continues to edge higher amid the company’s effort to pursue China’s growth opportunities.
The production of a $25,000 electric autonomous car would mark a major milestone in Tesla’s ambitions to pursue the mass market. Likewise, as the company meets production targets and shatters records on deliveries revenues and earnings, the stock should continue to power high.