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One of Tesla, Inc.’s TSLA newest Gigafactories is ramping up nicely, according to the company’s chief executive.
What Happened: Elon Musk said he spent a day walking the “entire Giga Berlin production line,” praising the team there for “doing excellent work.”
Spent the day walking entire Giga Berlin production line – team is doing excellent work!
— Elon Musk (@elonmusk) August 30, 2022
The Giga Berlin is Tesla’s first factory in Europe; the company has so far been relying on the Giga Shanghai for fulfilling its orders on the continent. While construction was completed at a rapid pace, Tesla had to delay the opening of the plant due to opposition from environmentalists.
The factory officially opened on March 22.
See Also: Why Aren’t We Using Batteries That Last 10 Times Longer? Elon Musk Responds
Why It’s Important: Musk’s positive take on the progress at the Giga Berlin comes after he flagged earlier this year that his newest factories are losing billions with hardly any output.
Tesla bull Daniel Ives from Wedbush sees supply as the primary problem for the company. Ramp-up of the Berlin and Austin gigafactories would likely help the company meet the demand, which is currently outstripping supply, he has said.
Sell-side firms UBS, Jefferies, and Deutsche Bank recently issued positive commentaries following separate factory tours. The new vehicle production in Europe could be a game changer, making Tesla a formidable challenger in the region, Deutsche Bank analyst Emmanuel Rosner said in a note, according to Teslarati. The analyst also sees a margin lift coming from the plant.
Tesla closed Tuesday’s session 2.50% lower at $277.70, according to Benzinga Pro data.
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Image and article originally from www.benzinga.com. Read the original article here.