Tesla (TSLA) to Construct Facility for Upcoming Model Y
Tesla Inc.TSLA has laid out plans for facility expansion to manufacture Model Y vehicles.
The Model Y is a sport-utility vehicle, which will include features such as "Falcon Wing" doors and an entirely new chassis. The vehicle will be produced in a newly constructed facility, while batteries and other components will be supplied by the existing gigafactory in Nevada. The model is expected to be rolled out in 2019.
In order to deal with shortage of lithium-ion batteries, the company is planning to build three additional gigafactories to effectively produce both vehicles and batteries. In the long run, the company expects to build up to 10 gigafactories.
In Jan 2017, the company has announced that it will invest $350 million in the Gigafactory for production of drivetrains, mainly electric motors and gearboxes for Model 3.
Tesla is aggressively working toward expanding its product portfolio to boost sales. The company is also on track with the production of Model 3 , due by July-end 2017. In Aug 2016, it had unveiled new versions of Model S and Model X with 100 kWh batteries.
The Model S P100D with Ludicrous mode is the fastest car currently in production and has the longest range among all electric vehicles in production as of now.
The company has also been raising funds to rapidly extend its business. In Mar 2017, Tesla declared that it will raise $1.1 billion, ahead of production of Model 3. In May 2016, the company had raised $1.7 billion via a public offering of shares to finance the accelerated production plan for Model 3 as well as ramp up annual production volume to 500,000 units by 2018 and one million vehicles by 2020.
Price Performance
Tesla has outperformed the Zacks categorized Auto Manufacturers-Domestic industry in the last three months. The company's share price is up 42% compared with the industry's gain of 2.5% during the period.
Zacks Rank & Stocks to Consider
Tesla currently carries a Zacks Rank #4 (Sell).
Tesla Inc. Price and Consensus
Tesla Inc. Price and Consensus | Tesla Inc. Quote
Some better-ranked companies in auto space include Allison Transmission Holdings, Inc. ALSN , Lear Corporation LEA and Dana Incorporated DAN . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has an expected long-term growth rate of 11%.
Lear has an expected long-term growth rate of 7%
Dana has an expected long-term growth rate of 3%.
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