Tesla Motors Inc (NASDAQ:TSLA) is not only looking for a site for so-called gigafactory, but is also running out of space in its headquarters and office complex at Palo Alto, California, which was once considered as too big space for a start-up like Tesla.
Expansion needs more space
However, with planned 2000 car per week within 18 months and planning underway for the Model X crossover indicates that Tesla needs more space than it currently has.
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Silicon Valley business Journal reported that the EV manufacturer that has come a long way since being just a start-up is searching for 200,000 to 300,000 square feet of office space in a high priced and congested Peninsula market. The report suggests that Tesla is looking to keep its employees close to the Fremont factory, which is only 20 miles away from the headquarters just above Stanford University.
Tesla Gigafactory plans
For its Gigafactory, the company is considering potential sites in Arizona, California, Nevada, New Mexico, and Texas for one or more locations. Factory would be build by Tesla, getting support from Panasonic to reduce per kilowatt hour costs on electric car batteries much required by Model III volume car.
Only last week, the company said that it is considering Reno, Nevada as a potential site for the Gigafactory, but is also open to options in other Southwestern States. Lance Gilman, one of the three owners of the Tahoe Reno industrial Center is upbeat about the Nevada chances.
Recently, JPMorgan analysts increased the price target from $163 to $170 maintaining Neutral rating on Tesla. According to analysts, the quarterly results were unsurprising, but developments on the gigafactory front were impressive. Previously, the research firm was cautious over the battery project owing to its capital intensity. Also, UBS analyst raised the price target from $200 to $230.
The electric car company posted better than expected second-quarter earnings. For the quarter, adjusted earnings came in at 11 cents per share, above the analysts expectations of 4 cents per share. Profit of the company came in low sliding from 20 cents per share in the previous year.
On Monday, Tesla shares were up 2.25% to $238.52.