Tesla Continues its Hot Streak
Tesla (NASDAQ:TSLA) has been one of the hottest stocks on the market again this week and for good reason. The company officially opened its Berlin GigaFactory on Tuesday, a plant that promises to give Tesla a strong foothold into the European market. The prime location in Europe’s automotive center, will reduce shipping and delivery costs for the company as European markets will no longer need to use vehicles made at the Shanghai GigaFactory.
Tesla investors breathed a sigh of relief now that the long-awaited production plant is finally open. Analysts anticipate that production will hit a capacity of 500,000 vehicles per year, as Tesla attacks markets previously dominated by BMW and Volkswagen. There has even been talks of Tesla building vehicles that are more friendly for European consumers, something that the company has already done in both the US and Chinese markets.
What’s Next for Tesla?
CEO Elon Musk recently tweeted that the Tesla Master Plan Part 3 is under way. This simple tweet sent Tesla investors and fans into a frenzy, as they speculated on what the next phase of the plan could bring. Wall Street analysts had some wild guesses including one from Morgan Stanley analyst, Adam Jonas, who believes that Musk will be shifting Tesla into the aviation industry. Considering one of Musk’s other companies is SpaceX, it might not be such a wild idea after all.
Before we can talk about Tesla eVTOLs, the company must correct some of the issues that have plagued it over the past few months. Numerous product recalls and ongoing regulatory issues with its FSD Full Self Driving technology have been headaches for both Musk and Tesla investors. Tesla also announced that 2022 would be another year without new vehicle models, as the Cybertruck and Roadster remain sidelined indefinitely until 2023 at the earliest.
Tesla is Operating at Another Level
In its openings of the Berlin and Austin GigaFactories, Tesla has proven it has finally overcome the scaling issues that other OEMs have faced. With GigaFactories in Asia, Europe, and America, the company is inching towards a global production line that will be difficult for other EV makers to match. Other companies like Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN) are not only finding it difficult to scale their operations, but keeping up consumer demand as well. While both companies were dubbed Tesla killers at one point, it is becoming increasingly clear that Tesla is simply operating at a higher level.
The stock has surged by 25% this month and just like that, shares are back to the $1,000 price level. Unfortunately for those who missed the bottom, we’ve seen this behavior in the past from the stock. After a surge to new highs, the stock pulls back by 20-30%. It could just be that Tesla had a good couple of weeks with the timely opening of the Berlin plant. More likely it is the struggles of its competitors that are highlighting just how well Tesla is conquering the global EV market.
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