Tesla shares advanced 3.5% on Friday, closing at $411.11, though the stock still posted a weekly decline of approximately 4.5%. After-hours trading saw little movement.
Ambitious Solar Manufacturing Target
According to a recent job posting, Tesla aims to establish 100 gigawatts of solar manufacturing capacity in the United States by the end of 2028, utilizing domestically sourced raw materials. Senior manager Seth Winger described the initiative as "audacious and ambitious." However, analysts at TD Cowen expressed skepticism, labeling the goal as "aspirational rather than likely" and referencing CEO Elon Musk's history of aggressive targets.
AI Push in China
Separately, Chinese media reported that Tesla is operating an artificial intelligence training center in China, focused on developing assisted-driving technology for local markets. The report cited comments from Tesla Vice President Tao Lin.
Market Context and Risks
Friday's gain contributed to a broader market rally that pushed major indices higher. For Tesla, the path forward involves significant execution risk. The solar manufacturing plan entails substantial upfront capital expenditure, while progress on assisted-driving features in China is subject to regulatory approvals. These factors could pressure margins and impact the stock, which remains sensitive to interest rate movements.
Investors are now looking ahead to key macroeconomic data, including the U.S. Employment Situation and Consumer Price Index reports next week, which could influence Treasury yields and high-growth equities like Tesla.
