“There’s no place like Texas!” Elon Musk delivered that line yesterday before a crowd of cheering fans at Tesla’s (NASDAQ:TSLA) Cyber Rodeo. The opening celebration for the Austin, Texas, Gigafactory generated considerable hype. And for investors, it didn’t disappoint. The company trended, and TSLA stock rose. Furthermore, Musk made an excellent impression on the Texas crowd. The dominant narrative of the CEO’s speech was that Tesla had grown too big for California. The company needed to set up shop in Texas to continue scaling electric vehicle (EV) and battery production. “We need a place where we can be really big,” Musk noted.
Texas certainly seems to be providing Tesla with what it needs. The Cyber Rodeo brought many announcements that should have both fans and investors excited. But most importantly, it demonstrated that the company has tremendous growth plans. According to Musk, it is the world’s largest factory by volume. Tesla’s focus on the road ahead spans more than just EVs. The company plans to use the Austin facility to expand operations in other important areas. And for TSLA stock, this means several important catalysts for which everyone should be watching.
Let’s take a look at what went down at the Cyber Rodeo and what it means for investors.
1. TSLA Stock: Cybertruck on Its Way in 2023
Attendees were hoping for product updates at the Cyber Rodeo, and they got them. Musk claimed that Tesla hopes to be producing 500,000 Model Ys in a single year at the Austin facility. With EV demand continuing to spike, scaling production of popular models will be of paramount importance in the year ahead. Musk added that the first vehicles made in Texas had already been delivered to customers.
Even more exciting, though, is that the company wants to be delivering both Tesla Semi and Cybertrucks before the end of 2023. The launch of both vehicles would be a significant boon to TSLA stock, as the hype around both has been significant. Shares popped after Musk provided an update on the Cybertruck at the Berlin event.
2. Elon Musk Makes Waves With Optimus Robot
Musk also reported that next year could bring the production of Tesla’s humanoid robot. “We have a shot of being in production for version one of Optimus hopefully next year,” he stated. First previewed at the company’s August 2021 AI Day, the Optimus robot model turned many heads. Musk touted the potential of Tesla’s robot production during the 2021 Q4 earnings call. He presented it as a machine that would be capable of performing a wide range of tasks, specifically those that humans often don’t want to do.
If all goes according to plan, we may see an Optimus prototype by next year. It’s unclear exactly what we can expect from this Tesla robot, but the anticipation surrounding it will likely push TSLA stock up when it gets close to a debut.
3. Wall Street Is Happy With the Event
Noted Tesla expert Dan Ives of Wedbush Securities sees the Cyber Rodeo as an important event in the company’s timeline. The analyst is notoriously bullish on TSLA stock, and recent events haven’t changed his perspective. He recently told the Austin American-Statesman that the launch of the Austin Gigafactory is significant for multiple reasons. “Austin for Tesla is not just its headquarters for tax status. It’s where more and more of its DNA of Tesla is going to be gathered,” he stated. Ives added that it signifies a new beginning for the company. Clearly it is one that investors should be watching closely, as the analyst just raised his TSLA stock price target to $1,400.
On the date of publication, Samuel O’Brient 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.