Tesla signs battery supply deal with CATL

  • Tesla signs battery supply deal with CATL

Tesla signs battery supply deal with CATL

Tesla.'s shares rallied for a fifth day Monday, adding more than $100 per share, as a torrent of good news further boosted investor sentiment.

In January 2020, Tesla started delivering Model 3 sedans assembled at its Shanghai plant, which the firm aims to build into a 500,000 vehicle per year production capacity facility. He sees "clear momentum around global EV demand inflection heading into 2020 and beyond, with Tesla leading the charge".

"Tesla Inc's stock surged 20% on Monday in its largest one-day gain since 2013, fueled by a quarterly profit at Panasonic's battery business with the USA vehicle maker and an investor report predicting its shares would rise more than ten-fold by 2024". Tesla secured a similar battery supply deal with LG Chem in August 2019.

Also Monday, Argus analyst Bill Selesky raised his price target on Tesla to a Street-high of $808 from $556, reflecting revenue growth from the legacy Model S and Model X cars, as well as strong demand for the new Model 3, which accounted for more than 80% of fourth-quarter production. Selesky reiterated a buy rating.

Tesla's robotaxi business is the self-driving taxi service that CEO Elon Musk wants to launch in coming years, depending on technical progress and regulatory approvals for full self driving (FSD).

Two consecutive profitable quarters for Tesla (with record auto sales) and profitable battery production for Tesla by Panasonic, surely are strong reasons for the stock to make gains. The biggest losers were the short-sellers who had bet on Tesla failing, and who found themselves down another $US2.5 billion ($A3.74 billion) in mark-to-market losses. It's now the second-largest carmaker in the world, behind just Toyota Motor Corp., valued at about $227 billion. The company also expects positive quarterly cash flow this year, which will help it to self-fund operations, and positive GAAP net income.