The latest report from analysts at JP Morgan indicated that Tesla Motors Inc (NASDAQ:TSLA) delivered more electric cars than expected during the second quarter.
According to the analysts, the company shipped 7,800 electric cars during the quarter compared with its previous expectation of 7,500 units.
In addition, they also estimated that Tesla Motors Inc (NASDAQ:TSLA) produced 8,000 electric cars during the period. They suggested that 1,000 vehicles were shipped to China and Europe.
The analysts opined that the mass market expansion of Tesla Motors Inc (NASDAQ:TSLA) “seems fraught with greater risk relative to demand, execution, and completion.” They added that the stock’s valuation “appears to be pricing in upside related to the expansion into mass-market segments well beyond our volume forecasts for the Gen III.”
JP Morgan analysts maintained their earnings estimate of $0.07 per share for Tesla Motors Inc (NASDAQ:TSLA). They also reiterated their Neutral rating and $163 price target for the stock.
Tesla Motors upgrades assembly line to increase production
Yesterday, Tesla Motors Inc (NASDAQ:TSLA) halted its production at its plant in Fremont California to install 25 new robots for its assembly lines. According to the electric car manufacturers, the new robots will increase its production capacity by 25%.
According to Simon Sproule, spokesperson of Tesla Motors Inc (NASDAQ:TSLA), the company invested $100 million for the upgrade—its biggest investment in the plant. According to him, the improvement enables Tesla to increase its Model S production and prepare for the manufacturing of Model X. The electric car manufacturer expects to launch the Model X in the second quarter next year.
Tesla Motors Inc (NASDAQ:TSLA) said it would resume its production after completing the installation of the 25 new robots over the next two weeks.
During the first quarter, the electric car manufacturer managed to produce 700 cars per week. Tesla Motors Inc (NASDAQ:TSLA) is currently producing 800 cars per week. With the installation of 25 new robots, CEO Elon Musk expects to produce 1,000 Model S units per week. The company’s target is to deliver 35,000 Model S electric vehicles this year.
U.K. government considers buying Tesla vehicles
Tesla Motors Inc (NASDAQ:TSLA) recently reported that the government of the United Kingdom is considering the Model S to become part of its official fleet. According to Sproule, “The Model S we understand will be under evaluation for inclusion.” The Government Car service will purchase 150 ultra-low emission vehicles. The agency is responsible in providing official vehicles to the ministers of U.K.
“It would be great to see California-built Teslas transporting Her Majesty’s ministers on official business across London,” said Sproule.