Why Tesla stock finally bounced today

The electric vehicle powerhouse isn't back on track yet — but by tomorrow, it could be.

| More on:
red Tesla car

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of electric vehicles leader Tesla (NASDAQ: TSLA) broke a three-day losing streak on Monday, bouncing back a respectable 2.3% as of 12:05 p.m. ET.

The company announced today that it will resume production at its Shanghai gigafactory as early as tomorrow at levels prior to the recent COVID-19 lockdowns there. 

So what

If you recall, earlier this month, Tesla's production numbers on electric vehicles in China fell as low as 200 cars per day, as measures imposed by the government to contain the spread of COVID-19 dried up the supply of auto parts to Tesla's factory. By today, according to a report by Reuters, the company said it's got production back up to 1,000 units per day -- and occasionally more -- but that still works out to an annual production rate of maybe 365,000 units, which is well below the factory's rated capacity.  

That's the bad news. The good news is that Reuters reports that Tesla now thinks it will be able to get its production capacity back up to its target of 2,600 units per day -- and that will work out to roughly 949,000 cars per year.

Now what

As I pointed out last week, 949,000 will be a magic number for Tesla. It will mean that at just one single factory -- Gigafactory Shanghai -- Tesla will be producing more cars in a year than all of its factories worldwide produced in 2021. It will put the company back on track toward its goal of producing 1.5 million electric cars per year.

And Tesla could be back on that track by as early as tomorrow. Even if coronavirus complications prevent Tesla from hitting its 1.5 million-car target this year, just knowing the company has reached its goal of producing 1.5 million cars per year will be reason to celebrate. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in Betashares Nasdaq 100 Etf right now?

Before you buy Betashares Nasdaq 100 Etf shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Betashares Nasdaq 100 Etf wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

More on International Stock News

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
International Stock News

Warren Buffett's $347 billion warning to Wall Street is ringing out loud and clear. History says this happens next.

Let's take a look.

Read more »

Warren Buffet
International Stock News

Warren Buffett nearly made his biggest investment since 2022. Here's what's holding him back.

Buffett said Berkshire came close to spending $10 billion, and he'd happily spend $100 billion.

Read more »

Happy man working on his laptop.
International Stock News

Here's why Amazon is a brilliant buy now (Hint: It's not e-commerce)

Fortunately for investors, cloud computing is going through a massive boom.

Read more »

A man looking at his laptop and thinking.
International Stock News

With Warren Buffett stepping down as CEO, will Berkshire Hathaway sell Apple stock?

Or will it find something else to invest in? Let's take a look.

Read more »

Man on his laptop standing next to data centres.
International Stock News

History says now is the time to buy Nvidia stock

History doesn't normally repeat itself, but it often rhymes.

Read more »

Woman relaxing and using her Apple device
International Stock News

16 words from Warren Buffett that should have Apple stock investors excited

Let's see what Buffett had to say and what it means for investors.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
International Stock News

Prediction: Warren Buffett may be shifting out of his Berkshire Hathaway CEO role, but he's not done investing

Let's take a closer look at what may be ahead.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
International Stock News

Here's why I'm not too worried for Alphabet despite Apple's potential new AI-powered Safari search

Investors panicked when the possibility was floated, but take a step back and look at the bigger picture.

Read more »