Tesla shares ended higher in the US Monday, despite news that investment bank JP Morgan Chase slashed its price target on the stock. Separately, Tesla’s Gigfactory 1 has become the largest battery factory in the world and employs some 3,000 staff at its Nevada base.
Tesla shares ended the US Monday trading session 0.96% higher at $308.44. It achieved a positive end despite sinking around 4% earlier during the day’s session. The Tesla stock is currently trading a little over 1% higher in pre-market activity.
Tesla’s price target reduction
Amid the heavy news flow surrounding Tesla, including CEO Elon Musk’s possible plans to take the company private with funding from a Saudi Fund, JP Morgan Chase analyst Monday sent out a research note to clients, advising them of their price target cut on the stock.
JP Morgan has reduced its price target for the stock to $195 from $308.
“Tesla does appear to be exploring a going private transaction, but we now believe that such a process appears much less developed than we had earlier presumed (more along the lines of high level intention),” said JP Morgan analyst, Ryan Brinkman.
“Our interpretation of subsequent events leads us to believe that funding was not secured for a going private transaction, nor was there any formal proposal,” he added.
Gigfactory 1 output grows
Separately, reports show that Tesla’s Gigfactory 1 battery factory in Nevada is no the largest battery factory in the world. A recent audit of the factory shows it employs over 3,000 staff and has an output of 20 GigaWatts per year. Tesla is working on increasing that capacity to 35 GWh by the end of 2018.
Gigfactory 1 produces batteries for Tesla and Panasonic, among other firms. And, the factory has also begun working on enlarging the solar power capabilities of the base on its rooftops.