Tesla Inc (TSLA) said last week that its Model 3 vehicles, manufactured in China, would receive government subsidies. The move is expected to help Tesla bolster its presence in the Chinese auto market.
Tesla shares closed higher for the fifth time in the past ten trading sessions on NASDAQ on Friday. It has also been the sharpest daily surge since November 19th. The stock went up 1.67% ($5.52) to $335.89, after touching an intraday high at $338.80, or a price level not seen since November 25th ($344.57).
Shares of Tesla Inc have risen 0.93% so far in 2019 compared with a 32.66% gain for the benchmark index, Nasdaq 100 (NDX).
In 2018, Tesla’s stock went up 6.89%, thus, it outperformed the Nasdaq 100, which registered a 1.04% loss.
China’s Ministry of Industry and Information Technology had already announced that Shanghai-built Model 3 vehicles were included in a list recommended for subsidies for new energy vehicles. The latter encompass plug-in hybrids, hydrogen fuel cell-powered vehicles and battery-only electric vehicles.
According to information on the website of the industry ministry, two variations of Tesla’s Model 3 sedans are on the list for the new energy vehicle subsidy program.
Tesla had said it intended to produce over 1 000 vehicles per week by the end of this year at its $2 billion facility in Shanghai.
In its initial phase, the facility is expected to produce as many as 250 000 vehicles per year, with 150 000 of them being Model 3 cars. This equals approximately 4 800 vehicles per week.
Analyst stock price forecast and recommendation
According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $290.00, with a high estimate of $949.00 and a low estimate of $190.00. The median estimate represents a 13.66% downside compared to the closing price of $335.89 on December 6th.
The same media also reported that at least 11 out of 33 surveyed investment analysts had rated Tesla Inc’s stock as “Buy”, while 10 – as “Hold”. On the other hand, 9 analysts had recommended selling the stock.
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