Elon Musk, the chief executive officer of Tesla Motors Inc (NASDAQ:TSLA) said the company is planning to manufacture its electric cars in China over the next three to four years, according to report from Bloomberg.
During the Geekpark Conference in Beijing today, Musk also said that Tesla Motors Inc (NASDAQ:TSLA) will build a big network of battery-charging stations in China.
Musk said. “At some point in the next three or four years we’ll be establishing local manufacturing in China. He added that the country is “very important to the future” of Tesla Motors Inc (NASDAQ:TSLA) and the company is planning to make a huge investment in charging infrastructure.
Musk is in China as the company prepares to start delivering its Model S vehicles to consumers in the country. It was recently reported that Musk will personally supervise the deliver the electric car to Chinese consumers.
Finbarr O’Neill, president of J.D. Power & Associates opined, “I think they can sell quite a few here in the market. There’s a lot of talk about Tesla but, you know, their numbers are not huge. Mr. Musk has been successful in many fields. I wish him luck, but there’s a limit to every market.”
The stock price of Tesla Motors Inc (NASDAQ:TSLA) surged more than 3% to $204.38 per share due to the statement of Musk.
Protests over Tesla’s delayed deliveries
A separate report from Wall Street Journal indicated that some Chinese consumers are protesting against Tesla Motors Inc (NASDAQ:TSLA) because of delayed deliveries.
Sam Long, a businessman and one of the Chinese consumers who is unhappy after he received a message from the electric car manufacturer that the delivery of his Model S vehicle will be delayed because the company is still training electricians in Zhuhai, a city located in the southern part of China. He said, “I feel my rights have been hurt.”
Long and 22 other Chinese consumers recently hired a lawyer to negotiate regarding the late delivery with Tesla Motors Inc (NASDAQ:TSLA). The company’s spokesperson, Simon Sproule stated that customers outside major cities such as Beijing and Shanghai will receive their Model S vehicles by June because of lack of service centers and charging stations. He said, “You would never sell any brand unless you have the tools to service it.” He added that Tesla is engaged in discussions with some of the customers regarding the issue.
Most shorted tech stock
Last week, the shares of the company fell below $200 due to report that it is the most shorted tech stock listed on Nasdaq 100.
Simon Calvin, an analyst at Markit Research previously told CNBC, “On the larger (capitalized) Nasdaq 100, Tesla has seen short interest surge by a third in the last month to 15% of shares outstanding.”
The shares of Tesla Motors Inc (NASDAQ:TSLA) remained at an elevated risk state, according to Smartstops.net, an equity risk management firm. Investors who exited their investments after receiving risk alert from the firm when the stock hit its most recent state of elevated risk saved $21.73 per share.
Smartstops.net’s risk management algorithms are a product of more than 40 years of stock market experience and helps investors to make wise decisions in trading stock and protecting their investments against huge losses.