Tesla jumps 6% amid reports of Gigafactory progress in Texas and Germany

Tesla Gigafactory Berlin
Tesla Gigafactory Berlin
  • Tesla moved higher on Thursday amid reports of progress being made at its new gigafactory locations in Berlin, Germany and Austin, Texas.
  • In a presentation to Travis County, Tesla said it expects the first "substantial completion" of the Austin Gigafactory on May 1, 2021. 
  • In Germany, WirtschaftsWoche reported that Tesla plans to buy an additional 30 acres near its Berlin Gigafactory, likely for logistics use.
  • Visit Business Insider's homepage for more stories.

Tesla continued to rebound from last week's tech-heavy sell-off amid reports that the electric vehicle manufacturer is making progress at its Gigafactory locations in Texas and Germany.

In a presentation to Travis County officials, Tesla said its Gigafactory based in Austin will reach "first substantial completion" on May 1, 2021. It's expected Tesla would be able to use the facility for some form of production on that date.

Another construction milestone Tesla reported to the Texas county is the "first dry-in" date of December 30, 2020. "Dry-in" refers to the Gigafactory being completed to the point where it can withstand the elements and work can transition to inside the factory.

Tesla plans to build an array of car models at the Austin-based factory, including the Cybertruck, the Model Y, and the Semi truck. Tesla electric vehicles rolling off the production line in Austin will help supply East Coast demand for them.

Read More: A strategist at the world's largest wealth manager lays out 4 election-related risks that could damage investors' portfolios - and shares how to safeguard against each one now, regardless of who wins 

And in Germany, WirtschaftsWoche reported that Tesla plans to buy an additional 30 acres near its Berlin Gigafactory. The land is expected to be used for logistic purposes, according to the report.

The Berlin Gigafactory will produce the Model Y and serve as an engineering hub for future advancements to Tesla's auto line-up. Construction of the factory is expected to be completed in March 2021, with the first Model Y expected to roll off the production line in July 2021.

Tesla rose 6% to $387.70 in Thursday morning trades. The EV company is climbing out from a 21% sell-off on Tuesday that was spurred by the S&P index committee's decision to not include Tesla in the S&P 500 index despite its eligibility.

tesla chart 3.JPG
Read the original article on Business Insider

Comments are closed.