NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) are advancing 2.31% to $254.89 on reports that its Gigafactory in Nevada will receive hundreds of Panasonic (PCRFY) workers to make electric car batteries at the plant, according to Reuters.
"The Gigafactory represents a fundamental change in the way large scale battery production can be realized," Tesla's Chief Technical Officer and co-founder J.B. Straubel said in a statement. "Not only does the Gigafactory enable capacity needed for the Model 3 but it sets the path for a dramatic reduction in the cost of energy storage across a broad range of applications."
The two companies last year signed an agreement that lays out their cooperation on the construction of a large-scale battery manufacturing plant in the U.S., known as the Gigafactory.
Tesla will prepare, provide and manage the land, buildings and utilities, while Panasonic will manufacture and supply cylindrical lithium-ion cells, the companies said.
Additionally, analysts at Robert W. Baird today increased Tesla's price target to $335 from $275 with a "buy" rating. The raise was due to the fact that investor sentiment about the automotive and energy storage company improving recently. However, some skepticism remains, including Tesla's new energy storage line, the launch of its SUV, and overall demand for its cars and products, analysts at Robert W. Baird said.
However, "We think upcoming events will help improve sentiment and drive shares higher," they noted.
Separately, TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: