Tesla is setting up a production unit in Germany. It has been officially announced following the approval of German authorities on March 4. Analysts believe the much-awaited Giga Berlin factory may now ease the deliveries without delays in the European markets.
A day later after the approval, the stocks of Tesla jumped about 7 percent in the pre-market trading as the Berlin factory has the potentiality of expanding production of Tesla vehicles to as much as 500,000 units per year.
The race of electric vehicles in Europe is witnessed to be in full gear equipped with enhanced competition and Giga Berlin has a competitive advantage for the company to hold the good grip of its supply chain in the key region.
According to The New York Times, the German approval is critical to the company and CEO Elon Musk jumped into the region with factory construction expenditure of about $7 billion two years ago. However, it risked them due as the approval was not secured and Tesla had to tear down the facility.
The demand for Tesla vehicles is high and has outstripped the supply. The vehicles are being delivered with a delay of about six months to customers. The situation can come to control with the opening of the Giga plant in Austin. It is learned the company has planned for a gala opening in April.
The supply chain issue was intense for Tesla last year and the dynamic is believed to become significantly moderate as more than 1.5 million annual units are within the reach in 2022.
Meanwhile, the shortages of chips are still an issue for the company as well as for the entire auto industry. The Russian invasion of Ukraine has turned up as an issue for many production houses. The European countries are being impacted and analysts are keeping a close watch.
Tesla is headquartered in Palo Alto, California, United States. It was founded in 2003 by Marc Tarpenning and Martin Eberhard. A few months later, Ian Wright joined and became the third employee. The company raised $7.5 million in early 2004 in series A funding and $6.5 million came from Elon Musk. He became the largest shareholder and chairman of the company.
Tesla became public in June 2010 and getting listed on the NASDAQ exchange. It issued 13.3 million shares and each unit was priced at $17. The company raised $226 million from the IPO.
The current share price with the 52-week range is $539.49-$1,243.49. The company's revenue in 2021 was $57.826B and it made a profit of $5.52 million.
The prime product line of the company is electric cars. Its most popular electric car is the Model 3.