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Tesla Said To Have Introduced A Second Shift At This Gigafactory

Tesla Inc TSLA has introduced a second shift at its Giga Berlin factory last Friday, electric vehicle news website Tesmanian.com reported, citing people familiar with the matter.

See Also: How To Buy Tesla (TSLA) Stock

What Happened: The second shift at the recently opened factory will help lift production amid the growing demand for Tesla vehicles. 

Giga Berlin opened on March 22 and is Tesla’s first big factory in Europe. Production at the factory has ramped up slower than expected due to “disruption in the supply of components from China”, although the situation is beginning to improve, the report said. 

The components for the production of Tesla’s Model Y in Germany have begun to arrive as Chinese enterprises emerge from a month-long coronavirus lockdown. 

Tesla did not immediately respond to Benzinga’s request for comment. 

See Also: Tesla A ‘Cornerstone Holding’ — But Usually-Bullish Analyst Cuts Price Target Again Anyway

Why It Matters: CEO Elon Musk in April warned that Tesla’s second-quarter production would be slightly lower than the first with the possibility that it could likely “pull out a rabbit of its hat” and ensure higher output. 

The world’s richest man said Tesla’s production would be substantially higher in the third and the fourth quarters. 

Tesla’s two new factories — Giga Berlin and Giga Texas — are expected to offset production disruptions this quarter. 

Price Action: Tesla shares closed 6.4% lower at $663.9 on Friday.

Read Next: Lights, Camera, Action: Tesla Has Plans For Hollywood

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: Tesla Said To Have Introduced A Second Shift At This Gigafactory

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