Tesla Reportedly Plans Shutdown of Fremont Plant for Upgrades

Tesla's plans include a new tent-like structure for a new assembly line, according to a report.
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Tesla  (TSLA) - Get Report reportedly is planning a shutdown of its factory in Fremont, California, as it implements upgrades.

The report came from industry publication Electrek. When Tesla had to shutter its plant in March due to the coronavirus, it decided to take advantage of the shutdown to improve the facility, the publication reported.

That includes a new tent-like structure for a new assembly line. “The strategy follows Tesla’s famous GA4 assembly line built under a tent-like structure in 2018,” Electrek's report said.

“At the time, Tesla received a lot of criticism for the unusual approach, but the new general assembly capacity helped Tesla increase Model 3 production to 5,000 units per week and accelerate Tesla’s growth. Since March, Tesla’s GA4 line has been focused on building Model Y vehicles instead of Model 3.”

Electrek also reported that Chinese media were percolating with talk that Tesla will open a second factory in China. It also cited an internal company leak that Tesla workers have suffered a spike in Covid-19 exposure, primarily at the Fremont factory.

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In addition, Tesla has been promised millions in potential tax breaks by the Texas county that wants the electric carmaker to build its next Gigafactory near the Austin airport.

Last week, the most bearish Wall Street analyst on Tesla, Ryan Brinkman of J.P. Morgan, raised his price target to $295 from $275, though kept his rating at underweight.

He acted based on the company’s second-quarter production-and-deliveries numbers. Brinkman also cited reports of a recent email from CEO Elon Musk to Tesla’s staff saying, "breaking even is looking super tight."

Tesla shares recently traded at $1,502, down 0.98% in an up market.