Photo by Tesla Fans Schweiz
With Elon Musk handing the first deliveries from its new Berlin facility, Tesla shares have been on higher levels in recent weeks. It lifted investors’ concerns if the EV manufacturer would be given the necessary approvals from the German government.
“I’d say 30% of investors we talked to over the last six months thought Berlin was never going to open because of the red tape and bureaucracy,” stated Wedbush Securities’ tech analyst, Dan Ives. “Many investors were fearing [Tesla] would never have a beachhead in Europe and it would just be an empty factory.”
The Berlin mega factory organized an event on March 22 to celebrate its firsts handouts of vehicles as Tesla’s share price was well in motion.
Next week, the same event will be held at Tesla’s new factory within the proximity of Austin, Texas, which has just begun sending out deliveries. The two facilities increase the number of automotive assembly factories the company has run two times, with its first factory in Fremont, California and its second facility in Shanghai.
The upturn has improved the value of Tesla shares from a bearish state to bullish conditions. The company shares closed at $766.37 on March 14, decreased by 36% from the high for the year, which was struck on January 3, the first day of 2022 trading.
However, in under three weeks, shares have increased, recovering the majority of the losses from the initial ten weeks of the year. Moreover, even with shares closing barely lower Wednesday, they disclosed profit in 10 out of 12 days of trading after the low levels, earning 43% in that brief period alone.
The upturn has cued Tesla to reveal that it will call on shareholders to grant a second stock split. Shares have increased over two folds since August 2020 – the company’s first split.
Tesla has handled an adverse industry trend, where general production has been dragged by a scarcity in computer chips and other components, well enough.
Opinions expressed by US Insider contributors are their own.