A Tesla Model Y is seen on the production floor at the Tesla Gigafactory during the open day. In Grünheide, east of Berlin, the first vehicles will roll off the production line from the end of 2021.
Patrick Balloul | Image Alliance | Getty Images
‘Big backlog’ on Tesla Stock removed after German The authorities said the automaker could start production At a new plant in Berlin, according to Wedbush analyst Dan Ives.
The conditional licensing of the car and battery plants in Brandenburg was expected after months of delays. Tesla had intended to start production of vehicles by early summer 2021, but covid pandemicSupply chain complexities and clashes with environmentalists have slowed its progress.
Ives, a well-known Tesla bull who anticipates a stock rally, said in a note to investors on Sunday that the Gigafactory in Berlin” Of paramount importance to Tesla and its stock price. Tesla Market value increased to more than 1 trillion dollars For the first time last OctoberAnd the But it has been declining gradually since then and now stands at less than $850 billion.
“The perceived red tape and headaches about the delays/disputes that opened this pioneering European factory were frustrating for investors to watch unfold as many on the street were skeptical whether Giga Berlin would actually open,” Ives wrote.
“We cannot stress the importance of Giga Berlin production to the overall success of Tesla’s footprint in Europe and the world, as the current Rubik’s Cube logistics of producing cars in China at Giga Shanghai and delivering them to customers across Europe has not been a sustainable trend,” he added.
Tesla sees the Berlin plant eventually producing as many as 500,000 cars a year.
Ives said the company’s Model Y is likely to be “front and center” at the plant for the next 12 to 18 months.
There are currently five to six month delays for the Model Ys and some Model 3s in different parts of the world, Ives said, noting that Tesla’s plants in Austin – and now Berlin – should help mitigate these issues and resolve production bottlenecks.
Wedbush believes that Tesla will increase its annual operating rate from 1 million units in 2021 to 2 million in 2022.
Ives’ price target is $1,400 for Tesla shares, nearly 70% above Friday’s closing price of $838.
– Additional reporting by Michael Wayland and Laura Kolodny.
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