Why This Tesla Analyst Thinks Model Y Production At Giga Austin Will Kickoff In A Week’s Time – Tesla Motors (TSLA)

after Tesla, inc. (NASDAQ:TSLA) Delivering stellar fourth-quarter delivery Sunday, the collective view among analysts is that capacity building and product updates, along with new product launches, are key to the next phase of growth for the electric vehicle maker.

Tesla Analyzer: Wedbush analyst Daniel Ives has an Outperform rating and a $1,400 price target for Tesla stock, with a bull case price target at $1,800.

Tesla’s thesis: The paperwork allows Giga Austin to begin production of Model Y vehicles within the next seven to 10 days, analyst Ives said in a note, citing the company’s analysis.

He added that the stamping and testing machines for the Model Y are already in place and mostly completed, with paperwork now being submitted by Tesla to officially start major production in Austin over the next week.

Related link: Tesla to raise controversial full self-driving package to $12,000 starting January 17: Elon Musk confirmed

The launch of the Austin production site in early January, according to the analyst, is critical to Tesla’s expansion of domestic and global production of Model Ys. He added that the car model is likely to be a huge year in 2022.

“We expect a formal ribbon-cutting party over the coming weeks in Austin with Musk, which has become the focus of Tesla’s broader supply ambitions as well as the official headquarters building,” Ives wrote in the memo.

By the end of 2022, the analyst said, Tesla will have the capacity to about two million units per year from about one million now.

He added that while Austin has a clear path to launching its main US plant within the next week, Berlin still has some final bureaucratic issues to be resolved before the launch begins in the January/February timeframe.

Tesla price action: Tesla shares closed Friday’s session 3.54% lower at $1026.96.

Related Link: Why This Analyst Thinks Tesla Is a $2,500 Stock And When It Might Reach That Price Target

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