Tesla’s Berlin Factory Begins Production

Tesla opened its third assembly plant, on the outskirts of Berlin, Germany, and made the first deliveries of its Model Y sedan on Tuesday.

With the carmaker's stock down 21% this year due to inflation, the ongoing pandemic, and rising interest rates, it is hoped that news of the new production facility will boost its value.

The world's most valuable carmaker intends to produce as many as 500,000 vehicles a year at the plant and plans to recruit more than 10,000 new workers. The added capacity should fuel Tesla's anticipated growth. The company sold roughly 936,000 vehicles in 2021, nearly doubling its 2020 sales. It is noteworthy that Tesla sales figures have increased dramatically despite the chip shortage of late 2021, which has hampered automakers.

German Chancellor Olaf Scholz spoke at the launch event, calling the factory another step toward a carbon neutral, sustainable energy future.

What does this mean for me? 

Analysts rightly view technology stocks as high growth, high upside assets. Positive news, such as major technological breakthroughs, increases in production capacity, and positive earnings reports, sends the stock price strongly upward. Tesla originally announced the factory in 2019. It has said all along that in 2022 it is focused on ramping up production and increasing output at its existing factories. 

Precisely news like this, for you as a stocks investor, could signal a rise in the value of your portfolio, with Tesla an interesting name to watch in the short- to medium-term.