This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Tesla (NASDAQ: TSLA) stock jumped 4% to start the week on Monday morning with the initial deliveries from the company's new gigafactory near Berlin imminent. The early pop settled back to a gain of 3% as of 11:40 a.m. ET.
So what
Tesla CEO Elon Musk has reportedly arrived in Germany ahead of a big opening ceremony for the company's new Berlin-Brandenburg gigafactory. According to Twitter users who follow Musk's travel and other Tesla-related news, Musk landed at the Berlin airport about 10 hours after leaving Austin, Texas. Pictures of preparations outside the factory for the grand opening ceremony event have also been posted on social media. German Chancellor Olaf Scholz will also attend Tuesday's "Delivery Day" opening, according to Yahoo! Finance.
Now what
Earlier this month, the facility received its final environmental permits, which listed several conditions the company needed to achieve. That has apparently been accomplished, and Musk will reportedly be there for the initial 30 Model Y Performance customer vehicle deliveries.
The German factory will play a key role in Tesla's overall growth plans. Along with China, Europe is one of the largest global electric vehicle markets. With the Berlin factory in operation, the company's Shanghai factory can focus more on sales within China. Currently, the Shanghai plant exports much of its production to Europe and elsewhere.
Tesla reported $5.5 billion in net income in 2021 and expects to be able to sustain annual production growth of more than 50% for several years. The new factory in Germany, as well as one in Austin, Texas, will help drive that growth.
Tesla shares are down about 12% year to date but have jumped more than 20% in the last week leading up to the openings of the two new factories. That upward move has continued today as Tesla followers highlight the events near Berlin.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
