Tesla Stock Is Rising. Giga-Berlin Is Ready to Produce EVs.

Tesla charging stations

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stock is rising Monday as the company is set to ramp up its new European production capacity this week.

Tesla (ticker: TSLA) stock is up 2.6% in Monday morning trading at about $929 a share. The

S&P 500


Dow Jones Industrial Average

are up 0.1% and down 0.5%, respectively.

At $919 a share, Tesla stock is worth about $950 billion based on its share count of just over 1 billion shares. Including management stock options likely to be converted into stock some day, Tesla’s market capitalization is about $1.1 trillion. On a fully diluted basis, Tesla’s market cap went past $1 trillion again about a week ago.

Tuesday, “Musk & Co. will officially cut the red ribbon on the Giga Berlin factory with Tesla now establishing a major manufacturing footprint and factory within Europe,” wrote Wedbush analyst Dan Ives in a Monday report.

Giga is the prefix Tesla uses as a naming convention for its factories. Giga is a numerical prefix that means 10 to the ninth power, or a one followed by nine zeros.

“We view the opening of Giga Berlin as one of the biggest strategic endeavors for Tesla over the last decade and should further vault its market share within Europe over the coming years,” added Ives.

Berlin is important for Tesla’s short- and long-term growth. Analysts expect the company to deliver up to 100,000 vehicles from the plant in 2022, growing to roughly 500,000 in the years to follow.

Vehicles made in Berlin are for the European market. That will help save shipping costs, as Tesla is has been supplying Europe in recent months from Shanghai and U.S. plants.

After Berlin, Tesla’s plant in Austin, Texas, is due to ramp production. Several opening events have been planned for early April, but there isn’t a fixed date for a ribbon cutting like in Germany. Tesla didn’t respond to a request for comment about Austin timing.

Analysts expect the Austin plant to produce up to 100,000 units in 2022, growing to roughly 500,000 in the years that follow. Tesla will produce the Model Y and, eventually, the Cybertruck in Austin.

Overall, Wall Street expects Tesla will deliver about 1.5 million units in 2022, up form 936,000 delivered in 2021.

Tesla stock is down about 13% year to date, while the S&P 500 is down about 7% and the

Nasdaq Composite

Index is off about 12%.

Write to Al Root at allen.root@dowjones.com

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