China factory production key as Tesla reports third-quarter results
Tesla Inc is conducting trial production runs at its new $2 billion China factory for the past several weeks and will sell some of the first cars from the plant to its employees, sources told Reuters, Trend reports.
Whether billionaire Elon Musk’s flagship company can start mass production quickly enough to hit stated targets is the question investors will want an answer to when Tesla announces third-quarter results on Wednesday.
The U.S. electric vehicles maker is under pressure to ramp up output globally, and the Shanghai plant’s production schedule is crucial if it wants to reach its ambitious target of an annualized production rate of 500,000 vehicles by the end of the year.
Tesla last week obtained the certificate it needs to start manufacturing cars in the country. But analysts contend that uncertainties around labor and suppliers make it a challenge to start mass production.