This New Partnership Promises More for Tesla Motors Inc (TSLA Stock)
Tesla Motors Inc (NASDAQ:TSLA) stock has crossed the $200.00 level after a disappointing month of November. Now that Tesla Motors CEO Elon Musk has joined the business advisory team of Donald Trump, things seem to be getting brighter on that front. The president-elect’s focus on manufacturing and creating jobs in the U.S. is bound to favor companies like Tesla Motors Inc which have manufacturing plants here and employ a substantial number of workers. This latest piece of news adds to Tesla’s promise of creating more jobs and bodes well for TSLA stock.
Tesla and Panasonic Corporation (ADR) (OTCMKTS:PCRFY) have finalized an agreement this week to begin manufacturing photovoltaic (PV) cells and modules at the Buffalo, New York factory. These high-efficiency PV cells and modules will be used for solar panels in non-solar roof products. When the production of solar roofs gets underway, Tesla will also incorporate Panasonic’s cells into a variety of its solar glass tile roofs. (Source: “Tesla and Panasonic Will Begin Manufacturing Solar Cells and Modules in Buffalo, NY,” Tesla Motors Inc, December 27, 2016.)
The Tesla CEO had made a demonstration of the new roof shingles last month, and after the go-ahead to the merger between Tesla Motors Inc and SolarCity Corp (NASDAQ:SCTY), Tesla is gradually moving towards its goal of being a totally integrated energy company. Tesla stock had remained depressed throughout last month, not only on Musk’s equation with Trump, but also because of the SolarCity merger, which many investors believed would not be good for Tesla Motors.
The new solar products by Tesla will work with Tesla’s energy storage products “Powerwall” and “Powerpack.” Production of the initial PV modules will begin in summer 2017, while working up to one gigawatt of module production by 2019. Elon Musk is confident that the cost of solar roofs will not be too high for customers. If the products receive good reviews from users, TSLA stock is likely to skyrocket.
Moreover, with Donald Trump’s focus on employment generation, the deal is significant, as it will lead to the expansion of Tesla’s American manufacturing base, as well as the creation of thousands of new jobs in the coming years. Tesla also reaffirmed SolarCity’s intent to create over 1,400 jobs in Buffalo. Panasonic is experienced with PV production and will also work with the company on developing next-generation PV technology at SolarCity’s Fremont, California-based facility. (Source: Ibid.)
TSLA stock is trading around $220.00 levels now and with the threat of the damage from Donald Trump’s presidency almost gone, Tesla stock may climb even higher.