Tesla's Gigafactory in Berlin, Germany, made its debut this week in what is a significant milestone for the electric vehicle maker's expansion in Europe – and a major win for its investors.
CEO Elon Musk and German Chancellor Olaf Scholz attended the Giga Berlin ribbon-cutting ceremony on Tuesday, when the company will present dozens of customers with their new Model Y vehicles.
The long-awaited manufacturing facility first announced by Musk in 2019 has faced a number of setbacks, largely from the COVID-19 pandemic and challenges in achieving construction permits from local authorities.
The State Office for the Environment in Brandenburg finally granted conditional approval earlier this month for the plant to begin commercial production of up to 500,000 vehicles per year.
"The red tape and headaches seen around the delays/disputes opening up this flagship European factory has been frustrating for investors to watch unfold as many on the Street were doubting if Giga Berlin ever actually would open," wrote Wedbush Securities analysts Daniel Ives and John Katsingris wrote in a report this week. "We cannot stress the production importance of Giga Berlin to the overall success of Tesla's footprint in Europe and globally."
Musk suggested on Twitter he might even dance at the celebration.
"While supply chain issues were a major drag on overall unit growth for Tesla in 2021, we believe over the coming year this dynamic will significantly moderate with potentially 1.5 million+ units now within reach annually for 2022," Ives and Katsingris wrote.
"While China will be a key growth driver, we believe demand is rapidly building for Tesla's Model Y in the US and Europe with 2022 so far looking like another ‘breakout year’ for Tesla and the EV industry," they added.