Photo by Tesla Fans Schweiz
With Elon Musk handing over the first deliveries from Tesla’s new Berlin plant, shares have been increasing in value over the past weeks, reducing 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.”
Tesla’s share price was well in motion on March 22, when the Berlin mega factory hosted a celebration for its firsts handouts of vehicles.
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 value of Tesla shares has improved from a bearish state to bullish conditions. The company’s closing price on March 14 was $766.37, which is 36% lower than its high for this year – struck on January 3, the first day of 2022 trading.
But in just ten weeks, they were able to recover most (if not all) losses from the first weeks’ trading activity. Furthermore, even with shares closing barely lower on Wednesday, they revealed profit in 10 out of 12 days of trading after the low levels, earning 43% in that brief period alone.
The recent upturn for Tesla has cued the company to announce that it will call on shareholders for a second stock split. Shares have increased over two folds since August 2020 – the first stock split in its history.
Tesla has thrived in the face of industry trends where supply chain issues have caused general production to drag.
Opinions expressed by Influencer Daily contributors are their own.
