- Markets Insider
Tesla shares are jumping after the company announced it was buying a bunch of vans.
More specifically, Tesla announced that it was expanding its service capacity by hiring 1,400 technicians, adding 100 new service centers and, yes, adding 350 service vans to its fleet.
All these additions are aimed at providing better and faster service for Tesla owners, a crucial move ahead of the launch of the Model 3.
The Model 3 is set to be released later this month, and the first production version rolled off the assembly line last week. The new vehicle is Tesla’s move into making electric vehicles accessible to a broad market. The Model 3 costs $35,000 before tax credits, which is much lower than Tesla’s other vehicles.
Shares jumped 2.40% on Tuesday after the company announced the updates on its Twitter account:
The future of Tesla service pic.twitter.com/lWx0rDr4Ix
— Tesla (@TeslaMotors) July 11, 2017
The company is hoping to pump out 20,000 Model 3’s a month by the end of the year, so expanding the service capacity of the company is probably a smart move. Tesla has been building out its network of superchargers ahead of the Model 3 rollout as well.
Tesla said that customers will be able to schedule service appointments via the in-car touchscreen and that 90% of service problems will be able to be diagnosed while the car is sitting in a home garage.
Tesla shares recently lost its ranking as the most valuable US car maker after investors cooled their red-hot valuations of the company. The company’s stock entered a bear market earlier this month, but has had small rallies Tuesday and last week after announcing a huge battery farm in South Australia.
Tesla is up 50.38% this year, and shares are trading at $322.39.