Tesla, Inc. TSLA is likely to raise production at its California car plant and is planning to hire more employees, per Bloomberg. Notably, in second-quarter 2019, the electric vehicle maker registered a record number of deliveries. After several job cuts in the past year, the company has reversed its stance. Its decision to increase production indicates that it is confident about the sustainability in demand for Model 3 vehicles.
Notably, in second-quarter 2019, the company posted record 95,200 Model 3 deliveries. However, during the same time frame, it delivered total 17,650 Model S sedans and Model X crossovers, down 21% year over year. In fact, the record sedan delivery is aiding the company to overcome waning Model S sales.
Tesla plans to produce considerably more than 360,000-400,000 vehicles that it expects to deliver in 2019. The output may reach 500,000 vehicles across the globe in 2019 if its factory near Shanghai can reach “volume production” early in fourth-quarter 2019. The electric-car maker is preparing for increasing output at its Fremont, CA-based factory.
In the past month, shares of Tesla have outperformed the industry it belongs to. Shares of the company rallied 14.2% compared with the industry’s rise of 5.6%.
Zacks Rank & Stocks to Consider
Tesla currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Ford Motor Company F, PACCAR Inc PCAR and CarMax, Inc. KMX. While Ford currently sports a Zacks Rank #1 (Strong Buy), both PACCAR and CarMax has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ford has an expected long-term growth rate of 7.3%. In the past six months, shares of the company have grown 12.5%.
PACCAR has an expected long-term growth rate of 8.4%. In the past six months, shares of the company have gained 17.6%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 34.8%.
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