Tesla Inc (NASDAQ: TSLA) will set up a new factory in Monterrey, Mexico that will create “many, many jobs”, says Andres Manuel Lopez Obrador (AMLO) – President of the United Mexican States.
Here’s what we know so far
In a press conference today, AMLO also said that the EV giant has committed to using recycled water to manufacture vehicles at the said facility.
Further details will be divulged at the company’s investor day, he added. The Mexican President revealed to have talked to Elon Musk this past Friday and Monday.
He was very responsive – understanding our concerns and accepting our proposals. I want to thank Mr Elon Musk, who was very respectful and understood the importance of addressing the problem of water scarcity.
Year-to-date, Tesla stock is currently up a little under 100%.
Pro says he’s bearish on Tesla stock
Also on Tuesday, Mark Hawtin of GAM Investments said he was “pretty bearish” on Tesla stock and does not expect it to return to $300 anytime soon.
The recent price cuts, he warned, could weigh in the medium term. Higher lease costs related to a decline in the company’s electric vehicles could translate to lower demand and a consequent hit to margins and profitability, Hawtin told CNBC.
He’s bearish even though the Nasdaq-listed firm reported record profit and revenue for its fourth financial quarter last month (read more). Hawtin’s view is in line with Bernstein that currently has a price objective of $150 on TSLA that represents about a 25% downside from here.