Tesla (TSLA) is recalling workers to prepare for the restart of its Shanghai factory, according to a Reuters report. The plant was shut for nearly three weeks following COVID-19 lockdown measures rolled out in the city in response to a surge in cases.
However, in a setback for the Elon Musk-led electric car manufacturer, it will not resume production on Monday, April 18, as it had intended, after a supplier faced logistics problems, according to the report. Instead, Tesla hopes to restart production at the factory on Tuesday, April 19.
In addition to Tesla, General Motors (GM) partner SAIC Motor is another automaker preparing to reopen its Shanghai factory as the city’s lockdown measures ease for businesses. Other companies, including pharmaceuticals, are also preparing to reopen. According to Reuters, companies resuming work would need to require workers to live at the workplace or limit their travel between work and home.
The Shanghai facility is one of Tesla’s global production hubs. Before it opened its European manufacturing hub in Germany, Tesla imported cars from China for its customers in Europe.
Wall Street’s Take
The Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 15 Buys, five Holds, and six Sells. The average Tesla price forecast of $1,005.64 implies 2.1% upside potential to current levels. Shares have increased 38% over the past year.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 76% Bullish on TSLA, compared to a sector average of 68%.
Key Takeaway for Investors
The restarting of the Shanghai factory is important to Tesla’s effort to meet strong demand for its cars and defend its leading share of the electric car market.
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