Tesla’s Newest Factory Comes With Promise

A while ago, it was reported that Tesla (NASDAQ:TSLA) was about to begin production in a new factory. More specifically, a new German factory, which is set to open next month.

With that knowledge, investors managed to increase the value of Tesla stock by 4.5% this past Monday. Was this the right call? Let’s get into it.

First, Something Else You Should Know

Last week, we received some concerning news regarding a new COVID variant, which provoked some responses from a few investors. 

To avoid potential losses, they opted to sell as much as they could. As expected, these actions decreased the values of multiple stocks in the industry.

Thankfully, as of today, affected companies have started to recover. And that includes Tesla. Based on our estimations, up to 1.3% of today’s price increase was because of this.

Why is this important to know? Because it tells us that up to 3% of the increase was because of Tesla’s newest factory. Overall, this can provide us with some additional perspective on the situation.

What Can We Expect From This New Factory?

In the past, Tesla has been open about its prospects for this factory. For starters, it will come with the latest in manufacturing technologies. Given that one of Tesla’s main strengths is already found in this front, we can’t help but expect even better results.

Plus, they’ll be exclusively manufacturing their new Model Y. At least for the first couple of months. Since this is a highly-expected vehicle, this will help them keep up with the demand.

Overall, Tesla is on a good path towards increasing its deliveries by 50%. In the long term, this can amount to a growth rate of 50% as well. With that knowledge, it stands to reason why their stock values rose by roughly 3%.

In short, we see Tesla as a great investment opportunity. One you should be taking advantage of right now.