Tesla (TSLA) Shares Move to Session Highs as Ambitious 500k+/Year Production Goal Called into Question
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Tesla (Nasdaq: TSLA) shares are moving to session highs amid another recent 'hit' piece.
Late Thursday, the Daily Kanban published an article on Tesla entitled:
Docs Reveal: Tesla’s Production Capacity Limited To Less Than Half Of Its 500,000 Vehicle Target.
The following key points are highlighted in the piece:
- Air quality permits for the recently-upgraded paint shop at Tesla’s Fremont plant limit the electric automaker’s production capacity to less than half of its targeted rate of 500,000 vehicles per year
- Tesla says it plans a second expansion of the Fremont paint shop, but has not yet applied for the necessary emissions permit or even put the equipment from its first expansion phase into use.
- If any future expansion or upgrade increases the Fremont plant’s net emissions by more than 6.5% over currently-permitted levels, Tesla’s paint shop will be required to comply with the extremely stringent Lowest Achievable Emission Rate (LAER) standard.
- These regulatory conditions present a serious challenge to the volume goals and production ramp forecast Tesla has publicly set for Model 3
Shares of Tesla are up over 1.5 percent Friday.
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