Today’s ‘Giga Press’ News Has Tesla Stock Revving Up. Here’s Why.

Elon Musk is making headlines this morning, and it’s not for one of his many cryptocurrency meme tweets or feuds with other corporate magnates. Rather, Tesla (NASDAQ:TSLA) is flexing one of its biggest technical improvements to its manufacturing process via the Giga Press. Tesla stock is continuing to heat up as the company dishes out details about this industry-defining new tool, as well as an update into its production schedule overseas.

Tesla (TSLA) Motors Assembly Plant in Tilburg, Netherlands.

Source: Shutterstock

Tesla cars are undoubtedly the leaders in the EV industry, but Elon Musk isn’t one to sit in satisfaction. Rather, he is always looking into ways to improve Tesla’s product. And it seems that right now, he sees a need for immediate improvement in the manufacturing process.

Tesla cars are made of many parts, adding up to one robust vehicle. The way that Musk sees it, the fewer parts, the better. In pursuing this ideology, the company has come up on a tool which will turn vehicle manufacturing on its head — the Giga Press.

Today, the technology is making news because Tesla is implementing its second Giga Press at its incoming German factory. The 400-plus ton machine is capable of churning out a Tesla chassis in only one or two pieces. It cuts out the need for welding and stamping of car bodies. At its massive weight, the Giga Press is the largest die-casting machine in the world. Now, it is helping to significantly cut down on the need for tinier parts. And, it’s likely to be a technology which other vehicle manufacturers adopt in the years to come. The new Giga Press machine will be the company’s second, after the flagship press landed in Fremont, California last year.

Tesla Stock Pops as German Factory Prepares for December Launch

InvestorPlace Markets Analyst and Tesla stock bull Joanna Makris is firm on the importance of the Giga Press showing through in the years to come. “Die casting will change the economics of auto manufacturing,” Makris says. “[It will allow] Tesla to make large portions of its cars with a single sheet of metal that will form into exactly what it needs, eliminating the need for multiple robots and people to weld and put those pieces together.”

Tesla will have a chance to flex this capability for the European market very soon. News of the company’s construction of a Giga Press in Germany comes alongside yet another big announcement. Tesla is expecting the Berlin-Brandenburg Giga Factory to begin production in December, bringing to an end a months-long wait for the correct environmental permits necessary to operate.

The grip of great news is bolstering TSLA stock quite a bit this Monday. Tesla stock is rising over 4%, with over 9 million shares trading hands throughout the morning.

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 Publishing Guidelines.

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