Published - Mar 4, 2022 @ 2:08 PM (EET)
On Thursday, Handelsblatt, a German newspaper, reported that Tesla received its final permits for its new facility near Berlin, which means that the automaker can finally aim towards car assembly in Europe.
In addition, the newspaper reported that the German state of Brandenberg has called a news conference today at which it will announce its decision on approval for the gigafactory.
"The approval procedure for the e-car and battery factory of the U.S. company Tesla in Gruenheide in Brandeburg is nearing completion. This will be announced tomorrow at a press conference in the State Chancellery in Potsdam," The state government said in a statement Thursday.
Still facing legal issues related to water usage, the approval does not mean that Tesla (NASDAQ:TSLA) can immediately start production at the factory. Moreover, with final approval, the German plant will take about 25 months to move from construction to production.
Tesla plans to manufacture approximately 500,000 cars and batteries at the factory every year.
TESLA IN 2022
So far, Tesla shares have had a rough year seeing that the stock is down more than 18% year to date. However, over the last five trading days, shares are up 8%, including the pullback on Thursday.
Overall, many growth stocks are down, with Tesla witnessing particular volatility this year as investors weigh the impact of likely interest rate hikes by the Federal Reserve. According to the Motley Fool, investors should note that Tesla's business has recently seen extraordinary growth.
Deliveries in the fourth quarter rose 71% year-over-year, despite a challenging environment for auto manufacturers.
Highlighting Tesla's 2021 performance, Daiwa analyst Jairam Nathan said Tesla has managed chip shortages better, while its cost-efficient China factory continues to be a major export hub, providing a competitive advantage amid the current geopolitical crisis.
Investor sentiments remain positive on Tesla stock with a price forecast of $1,068.40 which indicates 21.4% upside potential to current levels.
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