It has been a busy year so far for Tesla (NASDAQ:TSLA) and TSLA stock. In 2022, the electric vehicle (EV) innovator is working to conquer Europe. With demand booming across the continent, Tesla has been establishing itself as an EV leader in markets outside China and the United States.
March began with some excellent news on that front. Specifically, Tesla announced it had received approval to begin production at its Berlin Gigafactory. TSLA stock rose on the news. Now, it’s up again today as the company prepares for the factory’s first Model Y delivery event.
Tomorrow is the big day for Tesla and the world is watching keenly. This morning brought reports that Elon Musk was heading to Berlin for the grand opening in his private jet. Yesterday, the factory also tweeted it was preparing for the opening and delivery day. That has investors watching TSLA stock’s progress closely as the important day draws near.
Let’s take a closer look at what the Berlin Gigafactory opening means for TSLA stock.
What to Know About TSLA Stock and the Berlin Opening
- Located in the German state of Brandenburg, the Berlin Gigafactory is Tesla’s first Europe-based manufacturing facility. The company describes it as its “most advanced, sustainable and efficient facility yet.”
- The company initially planned the Berlin factory opening for the summer of 2021. This was delayed by environmental challenges that barred it from receiving a commercial operation permit.
- Early reports indicated that the factory’s official opening would take place on March 22. Although some critics expressed skepticism, the company has kept this promise.
- The event is expected to play host to some 500 guests, “including German chancellor Olaf Scholz.”
- The opening will allow Tesla to begin producing and delivering cars on European soil. Until now, most European deliveries were manufactured in Shanghai. The new factory makes for an export strategy with better long-term prospects.
- Notably, the Berlin Gigafactory is host to “Giga Press” machines, giant casting machines designed to reduce vehicle assembly costs and streamline production.
- In addition to the EV production facility, the Berlin Gigafactory also includes an adjacent battery production plant.
- Some report the gigafactory opening will mark “largest industrial development in Eastern Germany since reunification.” Sources indicate it will bring as many as 12,000 new jobs to the area.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.