Per Reuters, Tesla, Inc. (TSLA - Free Report) will halt production for six days at its general assembly in Fremont, CA factory between May 26 and May 31. Earlier, this electric-vehicle frontrunner struggled to ramp up the production of its new high-impact Model 3 sedan to the levels promised by the company. The proposed six-day shutdown at the end of May is aimed at to address production bottlenecks and work on its assembly line.
This is the third time this year that the company is preparing to halt its main automotive production line. Earlier, Tesla warned about a temporary 10-day production halt in second-quarter 2018. The company gave these warnings to better address bottlenecks that delayed the production of Model 3 sedans.
According to an article published by Electrek news portal, Tesla’s chief executive officer, Elon Musk told employees that the company is likely to attain a rate of 500 Model 3s per day this week, which implies 3,500 Model 3s per week. This is quite higher than the weekly production rate of 2,270, which it achieved in the last week of April. He added that the intended halt is aimed at giving the company time to make necessary upgrades, which is expected to aid it to produce 6,000 vehicles per week by the end of June.
In the past three months, Tesla has underperformed the it belongs to. The company’s shares have lost 15.3% over this period compared with 7.6% decline recorded by the industry. Currently, Tesla has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Gentex Corporation (GNTX - Free Report) and Ferrari N.V. (RACE - Free Report) . While Oshkosh and Gentex sport a Zacks Rank #1 (Strong Buy), Ferrari carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 19.9% over the past year.
Gentex has an expected long-term growth rate of 13%. In a year’s time, shares of the company have gained 24.5%.
Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 61.8%.
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