$Tesla Motors(TSLA)$

Tesla's Fremont Factory Is Running at 10-20% More Capacity, Securing "a Monstrous Quarter," Says Global Equities

by Eva Fox May 02, 2022

Tesla's Fremont factory is running 10-20% above capacity, securing high delivery rates. “2Q is shaping to be a monstrous quarter,” said Global Equities, affirming the “Buy” rating on TSLA (NASDAQ: TSLA) shares with a $2,300 price target.

Global Equities Research analyst Trip Chowdhry visited Tesla's Fremont factory again and was pleasantly impressed. He continues to talk about strong support for the manufacturer despite the recent decline in the price of TSLA shares, through their sale by Elon Musk, in connection with his purchase of Twitter.

According to his observations, Chowdhry is confident that the Fremont factory will provide extremely strong production, shipments, and deliveries in May 2022. In his report, the analyst said he saw a lot more trucks compared to the first quarter of 2022 and estimates that Tesla has increased the number of transport trucks by at least 20%. That is why he suggests that “Fremont factory is running 10% to 20% above capacity” and comments that “2Q is shaping to be a Monstrous Quarter.”

This increase in production capacity is due to the fact that Tesla is trying to compensate for the lack of production at Giga Shanghai. For three weeks in April, the factory was closed due to the COVID-19 lockdown. While production is now up and running and back up to more than 80%, the company still needs to work hard to make up for the lack of production during this time. According to Musk, the company expects to be able to produce roughly the same number of vehicles in Q2 2022 as it did in Q1, but it is possible to see even higher numbers. Despite the difficulties and production shutdown, Tesla expects to produce 1.5 million vehicles this year