Tesla Stock Up 3.85% On Leaked Info Of Production Boost At Fremont Factory

Upbeat news Tesla Inc. will definitely boost the production of electric vehicles (EVs) at its Tesla Factory in California sent the company’s stock higher Wednesday, but still failed to impress analysts concerned with the company’s bleak earnings picture.

“The Q2 delivery beat does not change our cautious view on Q2 earnings,” said UBS in a note to investors. Tesla will report second quarter earnings on Aug. 7.

Tesla’s stock rose 3.85 percent to $238.92 from Tuesday’s close of at $230.06 a share. It sank slightly to $238.80 in afterhours trading. Tesla’s market cap on Wednesday stood at $42.23 billion.

In a leaked email to employees, Jérôme Guillen, president of automotive at Tesla, said the company is “making preparations” to increase production. He said Tesla “hit new records in all production lines for output and efficiency” during the second quarter, noted Bloomberg. Guillen also claimed “quality is also reaching record highs.”

“While we can’t be too specific in this email, I know you will be delighted with the upcoming developments,” wrote Guillen.

This production spike holds for both the Tesla Factory and Gigafactory 1 in Nevada. The Tesla Factory in Fremont currently manufactures the Model S, Model X and Model 3. It has a workforce of more than 10,000 people. The Tesla Gigafactory 1 near Reno produces the Model 3’s 2170 lithium-ion battery cells and drive units.

Guillen’s email also included a plea to employees to inform friends and acquaintances about a lot of open positions in Tesla.

“As we continue to ramp up production, please tell your friends and neighbors that we have lots of exciting new positions open, both in Fremont and at Giga,” wrote Guillen.

The revelation that hiring is underway comes after a series of job cuts over the past few months where hundreds of Tesla employees lost their jobs. It confirms Tesla will indeed ramp-up production, said analysts, who noted this development bodes well for the company’s future.

Last week, Tesla reported new production and delivery records for the second quarter. Its announcement of record deliveries of 95,200 Model S, 3 and X EVs temporarily silenced Wall Street bears insisting Tesla faces an insurmountable demand problem.

Of the total EVs delivered by Tesla in Q2, 77,550 were Model 3 luxury executive sedans; 8,200 were Model S liftback sedans; while 8,400 were Model X mid-size luxury SUVs.

Tesla produced 72,531 Model 3 sedans and 14,571 Model S and Model X. Total production for Q2 came to 87,048 EVs. Total deliveries surged to 95,200 EVs. The previous delivery record was 90,700 EVs in the fourth quarter of 2018.