Tesla Stock Is Trading Higher After Hours: What's Going On?

Tesla Inc TSLA shares are getting a lift in Wednesday’s after-hours session following reports the company plans to open a new U.S. battery plant.

What To Know: According to a Bloomberg report citing people familiar with the matter, Tesla plans to expand battery production in Nevada by opening a new facility using idle equipment from China's Contemporary Amperex Technology Co. Ltd. (CATL).

The report indicates Tesla plans to buy machinery equipment from CATL to be installed in Sparks, Nevada. CATL will help Tesla set up the equipment, but the EV maker will have total control of the facility and cover all of the associated costs. The facility likely won't be operational until 2025. 

The initiative is part of a broader effort to bring the supply chain for battery cells to the U.S. The plant will reportedly be used to make cells for Tesla’s Megapack product. Tesla’s current Megapack, which is designed for large-scale energy storage, already uses CATL cells.

Bloomberg also reported that Tesla has plans to double capacity at one of its existing battery factories in California this year. The move would align with comments from CEO Elon Musk on Tesla’s earnings call last week. The Tesla CEO said Tesla’s energy storage operations would outpace the growth of its EV business in 2024.

Check This Out: Elon Musk’s Compensation Is ‘Tornado Situation’ For Tesla: Analyst Calls For New Plan To Satisfy CEO, Shareholders

TSLA Price Action: Tesla shares closed Wednesday down 2.24%. The stock was up 0.33% after hours at $187.90 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock