Tesla Gets County Nod To Reopen California Auto Plant - Report

Tesla Inc. (TSLA) is said to have been given a green light by health officials to resume production at its main Fremont auto plant ending a stand-off between the electric Read More... The post Tesla Gets County Nod To Reopen California Auto Plant - Report appeared first on TipRanks Financial Blog.

Tesla Gets County Nod To Reopen California Auto Plant - Report

Tesla Inc. () is said to have been given a green light by health officials to resume production at its main Fremont auto plant ending a stand-off between the electric automaker and Alameda County.

Tesla informed employees it received approval to resume operations at its factory after Alameda County’s interim health officer had approved its Fremont work plan and safety measures, according to an email seen by Bloomberg.

“We have local support to get back to full production at the factory starting this upcoming week,” Laurie Shelby, Tesla’s vice president for environmental, health, and safety told employees.

The Alameda decision comes after Tesla’s CEO Elon Musk last week had restarted production defying Covid-19 health orders currently in place throughout Alameda County. Furthermore, Musk filed a lawsuit against the County claiming its lockdown orders have prevented the electric automaker from resuming operations at its California plant planned for earlier this month.

The outspoken billionaire also threatened to move the carmaker’s operations out of California to Texas or Nevada saying that if the company retains its “manufacturing activity at all, it will be dependant on how Tesla is treated in the future”.

The value of Tesla shares has more than doubled in the past two months. The stock fell 0.5% to $799.17 as of the close on Friday.

Commenting on the stock after a meeting with Tesla’s investor relations, Emmanuel Rosner at Deutsche Bank, still maintained a Hold rating with a $850 price target, despite saying that the company’s message was positive.

“While management provided few details about its 2Q/2020 outlook, it believes Fremont production can ramp back up very quickly given its experience in China and that the supply chain is already coming back online,” Rosner wrote in a note to investors. “Tesla’s record backlog of orders should provide strong pipeline of deliveries regardless of near-term conditions.”

Overall, the rest of Wall Street analysts is sidelined on the stock. The Hold consensus rating is based on 10 Sells, 9 Holds, and 8 Buys. Following the stock’s recent rally it comes as little surprise that the $603.58 average price target projects 25% downside potential in the shares in the next 12 months. (See Tesla’s stock analysis on TipRanks).

Related News:
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Tesla’s California Auto Plant Gets Go-Ahead to Reopen Next Week
GM Plans To Reopen Lucrative Mexican Pickup Plant Next Week- Report

The post Tesla Gets County Nod To Reopen California Auto Plant - Report appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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Fiat Chrysler In Talks For $6.8 Billion State-Backed Loan In Italy

Fiat Chrysler Automobiles (FCAU) is in talks with Intesa Sanpaolo (ISNPY) over a 6.3 billion euro ($6.8 billion) loan backed by the Italian government to help the automaker cope with Read More... The post Fiat Chrysler In Talks For $6.8 Billion State-Backed Loan In Italy appeared first on TipRanks Financial Blog.

Fiat Chrysler In Talks For $6.8 Billion State-Backed Loan In Italy

Fiat Chrysler Automobiles () is in talks with Intesa Sanpaolo (ISNPY) over a 6.3 billion euro ($6.8 billion) loan backed by the Italian government to help the automaker cope with the production disruptions caused by the coronavirus-related stay-at-home orders.

Discussions are under way for a 3-year credit facility tailored to finance Fiat Chrysler’s operations in Italy and to provide further support to some of its 10,000 small and medium automotive enterprises in the country.

Since the end of April, the automaker is gradually resuming its operations in Italy after the coronavirus pandemic froze demand and meant manufacturers were forced to bring production to a halt.

The credit facility will be established for the sole purpose of payments to Italian suppliers, to support their liquidity and, at the same, support the resumption of production and investment at Italian plants.

Fiat Chrysler has 55,000 employees at its 16 plants and 26 R&D sites. In addition, over 200,000 jobs at 5,500 highly-specialized Italian suppliers will be dependent on the successful continuity of the company’s operations.

The coronavirus pandemic has wiped off almost 50% of Fiat Chrysler’s share value so far this year.

Overall Wall Street analysts are cautiously optimistic about Fiat Chrysler’s stock. The Moderate Buy consensus consists of 4 Buys, 2 Holds and 1 Sell. The $10.77 average price target indicates shares have potential to soar 38% in the coming 12 months. (See Fiat Chrysler stock analysis on TipRanks).

Last week, Fiat Chrysler and PSA Groupe, owner of Peugeot S.A., said in a joint statement that they each decided to scrap their planned ordinary dividend on 2019 results due to the impact of the coronavirus pandemic. The move will save 1.1 billion euro ($1.19 billion).

The cash preservation measure comes as the two automakers last year entered into a merger agreement to create the world’s fourth-largest automaker with a combined market value of about $50 billion.

Related News:
Fiat Chrysler Shares Decline on Dividend Payout Withdrawal
Tesla Gets County Nod To Reopen California Auto Plant – Report
GM Plans To Reopen Lucrative Mexican Pickup Plant Next Week- Report

The post Fiat Chrysler In Talks For $6.8 Billion State-Backed Loan In Italy appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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