Skip to content

TSLA stock price prediction as Tesla picks next plant location

TSLA stock price prediction as Tesla picks next plant location

Following a tumultuous 2022, electric vehicle (EV) behemoth Tesla (NASDAQ: TSLA) has experienced a remarkable resurgence in 2023. 

Fueled by improved macroeconomic conditions and a resurgent tech market, the company’s shares soared to triple-digit gains, briefly touching nearly $300 in July. 

A minor pullback followed a less-than-stellar earnings report in late October, which showed that the carmaker’s price cuts ate into its profitability. At press time, TSLA was sitting at $261.44, up 1.88% in the past 24 hours.

TSLA YTD price chart. Source: Finbold

However, a fresh surge of anticipation gripped investors on December 28, as reports surfaced indicating Tesla’s selection of a site for its next production plant, potentially adding a new dimension to the company’s upward trajectory.

Tesla to officially announce its next plant in January

As first reported by Ahmedabad Mirror, Tesla is set to establish a car manufacturing plant in Gujarat, a major Indian state.

The official announcement of this plan is expected to be made during the upcoming Vibrant Gujarat Summit in January 2024, which Tesla CEO Elon Musk is expected to attend, the report said. 

Gujarat, the fifth-largest Indian state by area, is seen as a favorable business environment for Tesla’s manufacturing efforts. The government offered three Gujarat-based cities for Tesla to build its plant, including Sanand, Becharaji, and Dholera. 

Ahmedabad Mirror’s sources noted that Gujarat bodes well for Tesla’s export-oriented strategy, catering to both domestic and international demand. 

The EV Giant does not import its vehicles directly into India due to the country’s high tariffs. The government had said there is no proposal to offer a subsidy on the import duty for EV imports into the country.

What does this mean for Tesla stock?

The announcement of Tesla’s manufacturing plant in Gujarat was welcomed by investors, with the company’s stock rising more than 1.2% in premarket trading.

TSLA stock premarket rise. Source: Nasdaq

Business developments and expansion plans such as this one typically incite positive investor reactions, however, the stock’s long-term trajectory depends on larger determinants such as the company’s fundamentals. 

Tesla’s Q3 2023 report showed that the automaker’s operating margin fell significantly from a year ago, mainly due to the series of price cuts the company unveiled this year to spur demand. 

Therefore, investors are likely to await improvements in fundamentals and noteworthy progress in the company’s self-driving and robotaxis initiatives before staging a sustained bull run for the stock. 

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.