According to reports, investment bank Wedbush analyst Dan Ives (Dan Ives) said today that the opening of Tesla’s Gigafactory in Germany is one of Tesla’s biggest strategic efforts in the past decade. In the next few years, Tesla’s market share in Europe will further increase.
Today, the groundbreaking ceremony of Tesla’s German factory was held. Tesla CEO Elon Musk will deliver the first Model Y electric cars produced at the factory to customers. Tesla announced back in November 2019 that it planned to build a new factory in Germany to cater to the rapidly growing demand for electric vehicles in Europe.
According to the original plan, the plant will be put into operation by July 1, 2021. However, due to opposition from local environmentalists and the impact of factors such as the epidemic, the factory was not allowed to produce until earlier this month.
In this regard, investment bank Wedbush analyst Ives said today: “We believe that the opening of the German factory is one of Tesla’s biggest strategic efforts in the past decade. In the next few years, as more consumers turn to electric Auto, Tesla’s market share in Europe should increase further.”
Ives believes the German factory is critical to Tesla and its share price performance. After all, in the long term, it is impossible to export cars from Shanghai to the whole of Europe all the time. Today, the Berlin plant has established a major beachhead for Tesla in Europe, with the potential to expand capacity to around 500,000 vehicles per year over the next 12 to 18 months.
Ives also said the opening of the German plant removes an “unresolved factor” affecting Tesla’s stock price.
Ives maintained an “outperform” rating on Tesla stock with a price target of $1,400. Yesterday, Tesla shares closed at $921.16 per share.
With the opening of the German factory, Wall Street analysts are predicting that Tesla has other bold moves. Morgan Stanley analyst Adam Jonas said in a new research note: “We see the possibility that Tesla will ultimately not provide products and services to the eVTOL (electric vertical take-off and landing) market. Sex is minimal.”
Jonas sees eVTOLs, or “flying cars,” as a logical evolution of Tesla’s ability to build electric vehicles. It will enter this potentially lucrative market. Morgan Stanley predicts that by 2030, the market size of the eVTOL industry in the United States is expected to reach $12 billion. By 2050, the global market size could reach $9 trillion.
Jonas believes that eVTOL is just one area that Tesla will venture into over the next few decades. Another promising project could be for Tesla’s automotive business to partner with Musk’s other companies, such as tunnel-digging company The Boring Company and space exploration technology company SpaceX.