Taiwan's Pegatron to build components for Tesla

Taiwan's Pegatron has chosen a site in El Paso, Texas, to build a plant that will provide components forTeslaInc, Taiwanese newspaper the Commercial Times reported on Wednesday.

The company said that details of its overseas plant investments, including timing, location, and investment amounts, were still in the planning stages.

It comes afterTeslafaces scrutiny in China where the military in March bannedTeslacars from entering its complexes, citing security concerns over cameras in its vehicle.

China is a key battleground for electric vehicles. In 2020Teslasold 30 per centof its global total in the country.

Pegatron said in November that it would set up a factory in the United States to be closer to its clients there.

Pegatron is best known as a key supplier for Apple Inc, but it has said it sees electric vehicles as a major source of growth in coming years.

Shares ofTeslaclimbed 3 per centon Monday after Canaccord Genuity raised its rating on the electric car maker to "buy" and compared its brand to Apple.

Canaccord Genuity analyst Jed Dorsheimer upgradedTeslato "buy" from "hold" and increased his price target to $1,071, the second-highest among 37 analysts tracked by Refinitiv.

(With input from agencies)