Tesla stock rose Wednesday after the company announced plans to introduce new technologies at its newly built factory in Berlin, although warned about the possible risks. Tesla plans to innovate in factories in Fremont and Shanghai in 2 years. The company is also looking for suppliers of Nickel for increasing production of batteries.
Tesla’s shares (TSLA) rose by 2.73% to $425,30 on Wednesday on the background of General growth of indexes, however, this growth was below the growth of such competitors as the Ford (F), General Motors (GM) and Chinese automaker NIO (NIO), which grew by 3.58%, 4% and 4.3%, respectively. The current price of Tesla stock at $77,19 below 52-week high of $502,49 made on 1 September.
On Wednesday, Tesla CEO Elon Musk has said that next year at its plant in Berlin, the company will produce the Model Y with “significant operational risk”, since it will work on the new structure of the battery and with new technologies. The Tesla factory in Berlin is scheduled to launch in the second half of 2021.
“Berlin will use 4680 cells with structural battery pack, and front and rear one-piece castings. Also there will be a new painting system,” said Musk.
Musk said that the Tesla factories in Fremont and Shanghai will take about two years to introduce new technology.
This announcement follows Tesla “Day” battery event, where the company said it will manufacture its own batteries “4680”, which are larger and easier to manufacture than cylindrical batteries “2470”, which the company buys today from Panasonic and other vendors. Tesla also announced plans to scale in the future to achieve production of 20 million EVS per year.
On Wednesday, the media reported that in an internal letter Mask to the employees mentioned that “it would be great if we could exceed the” half a million delivery vehicles Tesla this year. 500 thousand electric cars – has an ambitious goal for the company, given that this forecast was given to the pandemic. To achieve this goal, Tesla will need to significantly increase supplies of almost 182 000 in the fourth quarter. In the third quarter, the company delivered 139 300 electric vehicles, which was a new record.
The improved rating analyst
The growth of Tesla stock Wednesday, may also have contributed to the increase in assessment from New Street Research analyst Pierre Ferragu, who raised their rating from “neutral” to “buy” and target price from $400 to $578, indicating that the forecast 36% growth.
The analyst said that the company “ahead of the decade, ultra-high growth” and “no decent competition on the horizon.”
Earlier Tuesday, CEO and co-founder of the venture capital company Social Capital Camat of Palihapitiya in an interview with CNBC called Tesla is a revolutionary company that goes beyond the simple production of cars and people continue to “misunderstand” and “underestimate” the business.
Early Palihapitiya expressed confidence that in the future Tesla will reach the scale of Apple (AAPL) and will probably surpass Amazon (AMZN) to market value.
According to Bloomberg, Tesla held a conversation with two of the largest global suppliers of Nickel: Anglo-Australian BHP and the Brazilian company Vale, which confirmed the fact of negotiations.
“We really need to make sure that we do not limit the total availability of the Nickel – I actually talked to CEO’s of the largest mining companies in the world and said please produce more Nickel,” said Musk to investors in a presentation last month.
Analysts advise investors to pay attention to the actions of suppliers of raw materials for manufacturers of electric vehicles, as they can potentially grow. Analysts noted: the Australian company Piedmont Lithium (PLL), Westwater Resources (WWR), and American Resources Group (AREC).