Tesla shares fall for a second straight session on Thursday, company to establish design and research center in China

In a recruitment notice on its official WeChat account, Tesla Inc (TSLA) said that it intended to establish a design and research center in China to produce “Chinese-style” vehicles.

Tesla shares closed lower for a second consecutive trading session on NASDAQ on Thursday. The stock went down 0.97% ($5.01) to $513.49, after touching an intraday low at $493.74, or a price level not seen since January 13th ($492.00).

Shares of Tesla Inc have risen 22.75% so far in 2020 compared with a 4.49% gain for the benchmark index, Nasdaq 100 (NDX).

In 2019, Tesla’s stock went up 25.70%, thus, it underperformed the Nasdaq 100, which registered a 37.96% gain.

The notice was meant to recruit designers and other personnel and called for applications by February 1st. However, details such as the center’s location and when it is expected to begin operations were not disclosed.

“In order to achieve a shift of ‘Made in China’ to ‘Designed in China’, Tesla’s CEO Elon Musk has proposed a very cool thing – set up a design and research center in China,” the notice read.

Tesla located its first facility outside the United States in the eastern city of Shanghai and it began deliveries of China-produced Model 3 sedans earlier in January.

Analyst stock price forecast and recommendation

According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $350.00, with a high estimate of $734.00 and a low estimate of $200.00. The median estimate represents a 31.84% downside compared to the closing price of $513.49 on January 16th.

The same media also reported that at least 10 out of 32 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while other 10 – as “Buy”. On the other hand, 10 analysts had recommended selling the stock.