Tesla On A 'Hiring Spree' In China As It Readies For Model Y Production: Report

Tesla Inc TSLA has launched a large recruitment drive in China as it prepares to manufacture the Model Y vehicle at its Shanghai factory, Reuters reported late Monday.

What Happened

The electric vehicle maker is hiring both designers and factory workers, according to job posts seen by the newswire.

Tesla is reported to have posted the jobs on its human resources department’s WeChat account and is hiring designers in China for the first time, though the company didn't say how many it planned to hire. 

The Palo Alto-based automaker said in January it wanted to open a research and design center in the country to make “Chinese-style” cars.

Tesla is also looking to hire 600 workers for its assembly plant in Shanghai, a local government job posting revealed. It's hiring another 150 workers for quality checks, 200 for logistics, and 20 for security.

Why It Matters

The Elon Musk-led EV maker is planning to construct facilities to make the Model Y SUV in China and the hiring is in relation to those plans, people familiar with the matter told Reuters.

In March, Tesla advertised to hire solar project managers for the expansion of its energy business on the Chinese mainland. 

Wedbush Analyst Daniel Ives estimated this month that Tesla’s growth in China is worth at least $400 per share and EV penetration would ramp up significantly over the next 12 to 18 months.

The company sold 15,000 Model 3 vehicles in China in June and 11,000 in May.

Price Action

Tesla shares closed 8.65% higher at $1,539.60 on Monday and added another 0.2% in the after-hours trading.