Despite the temporary shutdown of its main car factory — and resulting legal tussle with local authorities — investors have largely shrugged off the expected sales drop and potential to wreak havoc on Tesla's next earnings report. The stock hit a record high in June, crossing the $1,000 threshold for the first time even as chief executive Elon Musk admitted it was probably overvalued.
"We continue to believe EV demand in China is starting to accelerate with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that Musk and Tesla are laser focused on capturing."
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