Tesla established its first European factory on the outskirts of Berlin on Tuesday in an attempt to compete with German automakers on their own ground. When fully operational, the business claims that its new "Gigafactory" will employ 12,000 people and produce 500,000 vehicles each year. Tesla's Model Y compact sport utility vehicle will be the focus of initial production.
Chancellor Olaf Scholz of Germany and Tesla CEO/Technoking Elon Musk, who performed an impromptu dance for fans as the first cars rolled out of the factory for delivery, attended the inauguration ceremony in Gruenheide, south-east of Berlin. The Tesla Technoking said: "This is a great day for the factory," describing it as "another step in the direction of a sustainable future".
Later he posted a comment on Twitter thanking Germany by saying "Danke Deutschland!" surrounded by German flags. When Germany and other European nations are seeking to minimise glasshouse gas emissions and wean themselves off Russian oil, German Economic Minister Robert Habeck said the factory's launch was "a nice symbol" that gasoline-powered cars can be substituted with electric ones.
Berlin Gigafactory 22 March 2022 Opening
Before acquiring official permissions, Tesla began construction on the massive complex less than three years ago. The corporation would have had to level the site if the licences had not been given. "That's a different company risk culture," When asked to compare Tesla's strategy to the glacial pace of German construction projects like Berlin's new airport, which opened after a nine-year wait, Habeck responded.
Environmentalists have expressed concern that the facility will have an impact on the region's drinking water supply. When local environmental groups filed a protest against the environmental ministry, disputing the licence it provided to Tesla's water supplier, the manufacturer was on the verge of losing its water supply contract.
Tesla has brushed off the warnings. Most members of the media were denied access to the site and the ceremony on Tuesday. Outside, however, environmentalists protested over issues ranging from the plant's water use to the trees killed in its construction.
Expected Factory Production
Tesla will deliver the first 30 Model Y Performance cars built in Germany on Tuesday. The automobiles have a range of 514 kilometres (320 miles) and cost €63,990, according to the company.
When fully operational, the factory would produce 500,000 cars per year, far exceeding the 450,000 battery-electric vehicles sold globally by German rival Volkswagen in 2021. In addition, 50 gigawatt hours (GWh) of battery power will be generated. For the time being, Volkswagen still has a 25 percent market share in Europe's electric vehicle market, compared to Tesla's 13 percent.
Tesla Stock
Following the announcement, Jim Cramer stated that everything is falling into place for Tesla at the perfect time. Cramer is an author and television personality from the United States. He is the host of CNBC's Mad Money and a reporter for Squawk on the Street. Cramer was the founder and senior partner of Cramer Berkowitz, a hedge fund.
Cramer said Tuesday, “I think Tesla stock is about to have a big run." Analysts predict that Tesla will attain an overall run rate of around 2 million units by the end of the year, according to him. Musk has stated that ramping up production will take longer than the two years required to construct the plant.
On March 4, municipal authorities gave Tesla the green light to begin production, subject to a number of conditions, including water usage and air pollution control. According to Cramer, Tesla also appears to have worked out how to deal with supply chain restrictions better than the competitors. The ribbon-cutting ceremony at Gigafactory Berlin on Tuesday highlights the company's de-risking initiatives in relation to China, he said.
"Tesla stock could be a major leader here," he said, adding that “Tesla makes the best electric vehicles”. He also compared Tesla's stronghold on the electric vehicle market to Ford Motor Co's market dominance upon the release of the Model T and Model A. "Everybody's got electric cars, but he [actually] sells electric cars," Cramer said in reference to Tesla CEO Elon Musk.
TSLA Price Movement: Tesla has traded between $546.98 and $1,243.49 over a 52-week period. The stock was up 2.67% at $945.79 Tuesday morning.
