Tesla shares close at an all-time high on Wednesday, company to manufacture electric vehicle chargers in a new China facility

According to a report by Reuters, citing a document submitted to the Shanghai authorities by Tesla Inc (TSLA), the US company intends to begin producing electric vehicle chargers in China in 2021.

Tesla shares closed higher for a third consecutive trading session on NASDAQ on Wednesday. The stock went up 3.35% ($18.62) to $574.00. The latter also was the intraday high and a fresh all-time high.

Shares of Tesla Inc have risen 586.06% so far in 2020 compared with a 39.15% gain for the benchmark index, Nasdaq 100 (NDX).

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

The US electric car maker intends to invest nearly $6.4 million in a new facility to produce the chargers, located in proximity to its Shanghai vehicle factory.

The new facility, which is expected to be completed in February, will have an annual production capacity of 10,000 chargers, the document revealed.

Currently, Tesla’s chargers, which are installed in charging stations or car parks, are imported from the United States.

In an attempt to reduce pollution from petrol or diesel vehicles, China has been offering substantial subsidies for electric cars, while expanding its nationwide network of charging points.

Analyst stock price forecast and recommendation

According to CNN Money, the 34 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $424.50, with a high estimate of $800.00 and a low estimate of $40.00. The median estimate represents a 26.05% downside compared to the closing price of $574.00 on November 25th.

The same media also reported that at least 13 out of 37 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 8 – as “Sell”. On the other hand, 12 analysts had recommended buying the stock.