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Tesla shares open mixed as its Shanghai manufacturing plans aim to cut tariff impact

Tesla shares openeda a little mixed in the US Friday, as the electric car manufacturer is planning to make 3,000 Model 3 vehicles per week, in its Shanghai factory. Those levels should help reduce the negative impact of higher tariffs amid the ongoing US-China trade disagreement.

Tesla CEO Elon Musk, meanwhile, tweeted Thursday that a new auto-parking feature is set to be ready in six weeks-time.

By 1335 BST, Tesla shares were 0.06% lower at $344.06. The stock has been mainly higher in recent weeks activity.

Tesla Shanghai manufacturing plans

In an SEC filing, Tesla said it is currently planning to manufacture 3,000 Model 3 vehicles, per week at its Gigafactory 3 in Shanghai. That will help it achieve its produciton target of 10,000 electric vehicles per week, while also working to alleviate the negative impact of recently increased Chinese tariffs on US-manufactured vehicles.

The filing also showed that Tesla understands that it must make improvements in its manufacturing processes.

“Ultimately, achieving increased Model 3 production cost-effectively will require that we timely address any additional bottlenecks that may arise as we continue to ramp, achieve reduced labor hours and increase supplier capacity,” the Tesla filing read.

It added, that despite the cost impact of those higher tariffs, the company continues to anticipate it will deliver a total 100,000 Model S and Model X vehicles, in 2018.

New auto park feature

Separately, Tesla CEO Musk tweeted on Thursday that ‘summon’ a new auto parking feature, should be available in six weeks, for all cars manufactured by the firm over the past two years.

“Tesla advanced Summon ready in ~6 weeks! Just an over-the-air software upgrade, so will work on all cars made in past 2 years (Autopilot hardware V2+),” Musk tweeted.

The ‘summon’ upgrade will allow the car to drive to your phone, by pressing a button on the Tesla app, Musk added.

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