Tesla (NASDAQ:TSLA) has some huge news for investors. As the electric vehicle (EV) race picks up significantly, many automakers are rushing to start production; others, like Elon Musk’s storied Tesla, is rushing to ramp up its existing production. TSLA stock holders are on the edges of their seats in anticipation of the company’s new European factory. Musk is sharing some timeline details today, exciting investors.
In order to further Tesla’s quest for global EV domination, Elon Musk is preparing what the company calls a “gigafactory” in Europe — specifically, in Germany. Tesla has three existing gigafactories in addition to its flagship Fremont production plant. The gigafactories are million-plus-square-foot factories meant to greatly expedite not only the production of Tesla’s EV but also of other solar tech products under the Tesla umbrella.
The German plant, located outside of Berlin, will be just the second Tesla production facility outside of the U.S. However, the opening of the factory is proving to be quite the headache for the company. Musk, in a tour of the plant for Reuters, is blaming “German red tape” for delaying the beginning of production in the factory. Notably, the plant faces opposition due to its presence in a drinking-water-protection zone. The company must secure the go-ahead from Brandenburg environmental agencies before the plant can start production.
TSLA Stock Stands to Gain From Potential October Opening
Musk remains bullish that production in this new German gigafactory can begin well within 2021. According to the Tesla executive, he expects to start producing cars at this location as early as October. Given the lack of approvals, the factory could very well face further delays, even pushing production until next year.
The billionaire entrepreneur refuses to give up, however, and is taking pains to get the local community on board. Musk is inviting members of the local Brandenburg-Berlin community to tour the facility in early October. It’s likely that this tour will be Musk’s push to “sell” locals on the factory in an attempt to secure the necessary approvals for the facility.
TSLA stock is down 0.42% on today’s trading session thus far.
On the date of publication, Brenden Rearick did not have (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.
