Tesla's European Vehicle Production 'Could Change the Game'

A Deutsche Bank analyst maintained a Buy rating on Tesla (NASDAQ:TSLA) on Monday and raised his price target to $375 after the stock split following an investor meeting at the electric vehicle firm's Gigafactory in Berlin.

Tesla's European Vehicle Production 'Could Change the Game'. The analyst said they had a guided tour of Tesla's new Gigafactory, tested the Model Y Performance at high speed on the Autobahn and had a meeting with IR President Martin Viecha. The analyst was upbeat following the event, noting that Deutsche Bank left with the feeling that Tesla's "new localized vehicle production in Europe could be a game changer, making Tesla an even more formidable competitor in the region and likely to boost the company's gross margins." "The plant is already capable of producing 500,000 Model Ys per year, but is currently operating with only 2 shifts; Tesla plans to move to 4 shifts and full production in 2023. The company confirmed that Giga Berlin's energy supply is similar to other OEMs manufacturing in Germany, acknowledging some production risks from a possible German Gas Crisis, but pointing to its strong flexibility to direct global vehicle production to regions where it sees strong demand." "As a result, we believe 2023 could be a pivotal year for Tesla and continue to view it as one of the most compelling stories in the auto industry. We are adjusting our estimates for a 3-for-1 stock split, raising our price target to $375 and reiterating our BUY rating." Tesla shares were down 1.9% at the time of writing on Monday. Source: investing.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!