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Tesla to Spend $188 Million to Expand Shanghai Factory

Tesla's Shanghai factory currently has annual output of about 500,000 vehicles that are delivered in both Asia and Europe.
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Tesla  (TSLA) - Get Tesla Inc Report plans to invest up to $188 million to expand production capacity at its Shanghai factory in upgrades that could employ 4,000 more people at the facility. 

The plans for expansion were reported by state-media Beijing Daily, which cited a Shanghai government platform for companies' environmental information disclosures. 

Reuters also viewed the government platform, but says the investment amount was removed by the time it accessed the document.

Tesla's Shanghai factory as its currently configured is designed to produce up to 500,000 cars a year with its 15,000 employees. 

Model 3s made in China are currently shipped to Europe. In October, the company sold 54,391 China-made vehicles, including 40,666 for export, according to China Passenger Car Association. 

TheStreet Recommends

Last week, analysts at Wedbush raised their price target on Tesla to $1,400 per share based on the inroads the company is making on China. 

"We estimate the China story is worth $400 per share to the Tesla story for 2022 and are raising our price target from $1,100 to $1,400 with our bull case remaining $1,800," Wedbush analysts Dan Ives and John Katsingris said in a recent note

Wedbush has an outperform rating for Tesla. 

Also this month, CEO Elon Musk said the Model S Plaid, Tesla's high performance luxury sedan, will be made available in China "probably around March."

Shares of Tesla were down 1.9% to $1,095.24 per share in early market trading Friday.