Tesla shares rise on report that the company is preparing to increase production in California

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A Tesla Model 3 is seen in the general assembly line at the Tesla factory in Fremont, California, on Thursday, July 26, 2018.

Mason Trinca | The Washington Post | Getty Images

Tesla shares rose in premarket trading on Wednesday after a report that the electric automaker will raise output at its factory in California.

The company’s automotive president Jerome Guillen said in an email to employees that Tesla is “making preparations” to increase production, according to Bloomberg. He reportedly said Tesla  “hit new records in all production lines for output and efficiency” during the second quarter  of this year, while at the same time “quality is also reaching record highs.”

“While we can’t be too specific in this email, I know you will be delighted with the upcoming developments,” Guillen reportedly said.

Tesla stock rose 1.7% in premarket from Tuesday’s close of $230.06 a share.

Elon Musk’s automaker impressed Wall Street with record second quarter sales numbers yet analysts remain cautious, focusing instead on the company’s upcoming earnings report. Tesla is expected to report second-quarter earnings on Aug. 7.

“The Q2 delivery beat does not change our cautious view on Q2 earnings,” UBS said in a note to investors on July 3.

Read the full Bloomberg report here.

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