Tesla Inc! is set to take over The Pudong Delivery Center in Shanghai, China, to help boost its business in China.
China has been touted as a battleground for electric vehicle manufacturers, and Tesla seems to be taking the country with a population of about 1.4 billion people, very serious.
This week, Wedbush analyst Daniel Ives reiterated his Neutral rating and $1,900 price target for Tesla but raised his bull-case scenario target from $2,500 to $3,500 because he sees $35 EPS Potential in China alone. Ives said China could represent more than 40% of Tesla’s total sales by 2022.
Yesterday, Tesla Stock bullish analyst Philippe Houchois of Jefferies followed the likes of Daniel Ives of Wedbush by raising the price target of the electric vehicle giant stock to $2,500 from $1,200 while keeping a Buy rating.
The 100,000 Tesla vehicle capacity will have a small car theme park, sales, customer center for pickup purposes, and after-sales services.
According to Tesmanian, The Pudong Delivery Center will be refurbished in late August and officially handed over to Tesla with commissioning expected in early September.
“According to staff, the Pudong Delivery Center once belonged to the Shanghai Free Trade Zone Parallel Imported Cars, which was mainly used as a second-hand car trading showroom and was later rented by Tesla. The delivery center exhibition hall has a total area of 4,512 square meters and is divided into 2 floors. The first floor mainly provides functions such as delivery and display, and the second floor is the office area.” – Equal Ocean
This massive 2 floors 4,512 square meters can deliver about 300 vehicles per day once it goes into operation. This center is said to be able to deliver vehicles to customers from Monday – Sunday, meaning every day of the week.
This is good news for a growth company like Tesla that investors and analysts expect only good news from since the Stock of the electric giant is now trading about $2,000 with a market cap of $400 billion.
Who said demand is a problem?.