Tesla is planning to make some changes to an application for its gigafactory in Europe. Reuters reports that the new application will include the construction and operation of a battery cell factory, initially flagged by the automaker.
It is still unclear as to how long it will take for officials to approve the new application. The proposed amendments comes days after Tesla stated that the construction of the factory in Gruenheide was moving forward.
The company says production and deliveries are still on track for late 2021. Once complete, the facility should produce up to 500,000 Model Y cars annually that Tesla intends to target the European market with. According to Reuters, Tesla has not been impressed with the German regulatory processes. Ahead of the opening of the gigafactory, the automaker has called out the lengthy regulatory methods.
“Since there are no further details about the nature and scope of the planned changes, statements on the process and the time it will take to take a final decision can only be made at a later stage,” said the Ministry of Agriculture, Brandenburg, Germany.
Following Tesla 1Q 2021 results, Wedbush analyst Daniel Ives has reiterated a Buy rating on the stock. According to the analyst, the company delivered strong results at the back of strong electric vehicle demand that looks robust globally. Tesla had its strongest order intake number in history, in what is usually a low season, helping total revenue climb to $10.39 billion.
Ives commented, “While the bears will laser focus on the chip shortage spoiling the EV party for Tesla in 2021, we believe the reality is that demand is spiking globally for Tesla’s/EVs, the company’s flagship production build outs in Berlin and Austin appear right on schedule, and the company has a treasure chest and cash flow to fund future R&D/capex endeavors in this EV arms race for the next decade.”
The analyst has since reiterated a $1,000 price target on the stock, implying 47.71% upside potential to current levels.