Tesla‘s (TSLA) Gigafactory Berlin is reportedly slated to become operational in December, but production ramp up is expected to be slow. Tesla stock rose.
After several delays due to regulatory red tape and environmentalist objections, production at the new facility located near Berlin in Brandenburg, might start within days, according to Electrek, which cited German media reports.
Tesla’s Model Y will be made at the site, named Gigafactory Berlin. The report said the company expects to make about 1,000 units per week in January. Tesla doesn’t expect to make more than 30,000 vehicles at the plant during the first half of 2022, the report said.
Tesla Berlin will begin to supply European demand. That would free up production at its Fremont, Calif., and Shanghai plants. And it would cut transport costs on the German vehicles.
News about the imminent opening of Tesla Berlin comes just days after Tesla revealed Friday it was giving up on extra subsidies for making batteries at the Berlin plant.
Under those subsidies, the company was expected to receive about $1.28 billion. CEO Elon Musk tweeted: “It has always been Tesla’s view that all subsidies should be eliminated, but that must include the massive subsidies for oil & gas.”
Meanwhile, Musk apparently hinted at lower Q4 deliveries in an alleged email to workers.
“Per my email several weeks ago, our focus this quarter should be on minimizing costs of deliveries, rather than spending heavily on expedite fees, overtime and temporary contractors just so that cars arrive in Q4,” the “leaked” email reportedly said.
In the past, end-of-quarter emails have prodded workers to deliver as many cars as possible to meet projections.
Shares rose 4.8% to above 1,133 on the stock market today. Tesla stock broke out past a cup-base buy point of 900.50 on Oct. 22 and raced up to an all-time high of 1,243.49 on Nov. 4, according to MarketSmith.
Shares tumbled for several days afterward as Musk began selling 10% of his stake in the company, but the stock has since rebounded.
Among other U.S. based EV makers, Lucid (LCID) was up 2%, while Rivian (RIVN) reversed early losses and rallied 3.6%. Among U.S. automakers with a growing EV slate, General Motors (GM) lost 0.4% and Ford (F) declined 0.7%.
U.S.-listed shares of Germany’s Volkswagen (VWAGY) fell 2%.
Follow Adelia Cellini Linecker @IBD_Adelia.
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