The company behind modern-day electric cars and soon to be semi-trucks and roadster managed to expand its current market capitalization by a whopping $6 billion gain since December 5. This is due to the massive influx of bullish run that Tesla (NASDAQ:TSLA) garnered in the past weeks and even months after having lackluster performance which started last September.
According to statistics and reports, one of the biggest contributing factors was the amount of Model 3 that were produced and that were sold in the market. This is great news as investors and analysts view this as a production overhaul from the previous production debacle they have on earlier orders.
Furthermore, Tesla is looking to bump up its Model 3 production, even more, these coming weeks with a whopping 5,000 units per week as an answer to the previous bottlenecks in the earlier production of the said models. The quota was raised to a whopping 20,000 units a month or 5,000 units weekly. This is also due to the underwhelming production of the Model 3.
The market can also expect that the 5,000 quota per week may see a rise, if not doubled, in 2018 but there weren’t any official notes and clarification that came from Tesla regarding the increase in production.
There are couple of things that may hinder the production of the Model 3 according to Elon Musk himself; he mentioned that the labor costs were coming way too high, the costs of the unit themselves are also on a higher price tag, and several equipment and items that are put on the Model 3 are taking too long to be collected and collated.
One of the biggest rebound the company had these past days is the massive pre-orders they have from Pepsi Cola Products Phils Inc (PS:PIP). for their semi-trucks. According to the beverage company, 100 Tesla semi-trucks were pre-ordered in an attempt to increase their massive fleet of delivery trucks which are going to be directly routed from the production warehouses to the retailers.
On the bleaker side, despite the Pepsi news and the market cap expansion, Tesla’s shares traded lower today. More so, the company’s shares were relatively volatile for the whole duration of the week. Furthermore, Tesla’s semi-truck is looking to have an opponent as Thor’s ET-One is also scheduled to drop in 2019. The main feature ET-One packs are the 300 miles of single charges and a whopping 400 tons of freight.