Tesla (NASDAQ:TSLA), like many of its mega-cap peers, has spent this week battling negative market forces. With the market selloff spurred by Federal Reserve rate hikes, many companies struggled. TSLA stock was no different, now down 20% for the month.
However, Tesla reported some good news this week.
The company is planning to expand its gigafactory facilities in both Berlin and Shanghai. Plus, production is already back up to 80% of what it was prior to the Shanghai shutdowns. If both expansion efforts materialize, the factories will be set to continue scaling production and meet the rising demand across both Europe and Asia.
Those weren’t the only stories worth paying attention to, though. Let’s take a look at this week’s news rundown for TSLA stock investors.
Top Headlines for TSLA Stock Investors
Tesla releases list of battery material suppliers, confirms long-term nickel deal with Vale
This news represents a significant step forward in Tesla’s quest to conquer the electric vehicle (EV) battery market. Supply chain constraints, including those stemming from the Russian invasion of Ukraine, have posed significant threats to battery production. For Tesla to confirm a multi-year deal with Vale (NYSE:VALE), one of the world’s leading nickel producers, is no small thing. It positions the company well to keep producing batteries. Anyone who doubted Tesla’s resources should be reassured of its ability to procure valuable battery materials.
Tesla targets pre-lockdown output in Shanghai by mid-May
Tesla has resumed production in Shanghai and it is determined to make up for lost time. The company has already scaled EV production at the plant back to 80% of its pre-shutdown levels. Reuters reports that while the company is only running one shift at the Shanghai facility, it plans to add another soon. Prior to the recent shutdowns, it was running three. At this rate, Tesla won’t have a problem meeting its goal of returning to its original output by mid-May.
Analyst: Q2 2022 will be “monstrous” for Tesla
Wall Street is still bullish on TSLA stock and one analyst just issued a positive take. Global Equities Research analyst Trip Chowdhry recently issued a note to investors. “May 2022 is off to an extremely strong [start with] Production, Shipments, and Deliveries,” he wrote. His estimate is that the company’s number of shipping trucks has grown by 20%.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
