“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,” said Dan Ives, tech analyst at Wedbush Securities. “Many investors were fearing [Tesla] would never have a beachhead in Europe and it would just be an empty factory.”
The Berlin plant hosted a ceremony March 22 to mark its first deliveries as the rally in Tesla’s share price was well underway.
A similar event is planned next week at Tesla’s other new plant near Austin, Texas, which has already started deliveries. The two factories double the number of automotive assembly plants the company operates, joining its original plant in Fremont, California and its second factory in Shanghai.
But in less than three weeks, shares have shot up, recouping most of the losses from the first 10 weeks of the year. Although shares closed narrowly lower Wednesday, they posted gains in 10 of 12 trading days since hitting that low, gaining 43% in that short stretch alone.
Tesla is due to report first quarter sales in the coming days. (The company doesn’t announce ahead of time the exact day it will do so.) The consensus is that global sales will come in near the 308,000 cars it sold in the fourth quarter. That would mark a 67% jump from the first quarter of 2021.