Tesla gains major advantage in Europe with Giga Berlin set to go live
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Wedbush Securities analyst Dan Ives said a major overhang was removed on Tesla (NASDAQ:TSLA) after German authorities finally gave approval for production at the Giga Berlin to begin.
Ives' breakdown on Tesla: "We cannot stress the production importance of Giga Berlin to the overall success of Tesla's footprint in Europe and globally, as the current Rubik's Cube logistics of producing cars in China at Giga Shanghai and delivering to customers throughout Europe was not a sustainable trend. The Berlin factory establishes a major beachhead for Tesla in Europe with potential to expand this factory to production of ~500k vehicles annually with Model Y front and center over the coming 12 to 18 months."
The Giga Berlin is called a major advantage for Tesla (TSLA) with the race for electrification in Europe hitting another gear and EV competition increasing from every angle.
Based on Austin and Berlin going live this year, Tesla is seen having run rate capacity of approximately two million units annually from roughly one million in 2021.
Wedbush Securities has an Outperform rating on Tesla (TSLA) and price target of $1,400.
Shares of Tesla (TSLA) fell 1.29% in premarket action to $827.49 on a day crude oil prices are soaring.