After touring Tesla's Berlin Gigafactory, an analyst learned that electric automobiles from the company are in great demand. When gas prices rose earlier this year, Tesla's US order rate saw an increase.
Tesla is Experiencing a Demand Surge for Its Cars
Electrek reported on August 31 that Tesla is facing increased demand for its electric vehicles even though its prices have increased. This was identified after a Wall Street analyst paved a visit to Tesla Gigafactory in Berlin.
When petrol prices rose earlier this year, it was noted that Tesla's order rate in the US soared to all-time highs, but because of its growing backlogs, Tesla even stopped collecting orders for several of its car models.
Pierre Ferragu, an analyst of New Street Research, attended the event hosted by Tesla in Gigagactory Berlin and was able to notice how the business is dealing with exceptional demands.
In line with this observation, he told clients, "Tesla is facing unprecedented demand. Everybody I know at Tesla and with whom I could discuss that topic agrees that demand is way above what hopes were a few years ago."
Ferragu also said that the market shares for Tesla and its competitors would mostly rely on their ability to scale up production, given how well-liked electric cars are.
Additionally, the analyst has noted that Berlin outperforms Fremont in terms of efficiency. This is because of the docks on each side of the facility that simplifies logistics and guarantee prompt component supply.
At peak capacity, the 45-second assembly line will create 10,000 cars each week. Tesla's cars are currently built with a backcasting, but this will change once the 4680 structural battery packs are available.
Ferragu's target price for Tesla's stock, which is now trading at $275 per share, is $530. He estimates that if Tesla can create 20 million electric cars yearly, its value may reach $10 trillion by 2030.
Read Also: Facebook, Instagram May Get More Paid Features
Elon Musk Celebrated Tesla's 3 Millionth Car
Several weeks ago, CNBC published a story regarding Tesla CEO Elon Musk's Twitter announcement. On August 15, Musk tweeted that his electric vehicle firm has already made three million units which one-third was manufactured in Gigafactory Shanghai.
Before this success, Musk resented that Tesla's Berlin and Austin facilities were losing billions of dollars each year due to supply chain and production problems. So, he was eager to restart the Shanghai facility in June.
The CEO's announcement after months of lockdowns and component shortages in China implied that Tesla's Shanghai plant had bounced back, manufacturing a sizable number of new cars after launching in 2019 and following years of investment.
It said in July that it delivered 254,695 vehicles in the second quarter, increasing 26.5% over the previous period. However, Business Insider has reported that Tesla's stock declined 25% this year due to inflation and general macroeconomic uncertainty. While facing legal action over a $44 billion Twitter deal, Musk sold 7 million Tesla shares for $6.88 billion last week.
Even though it has manufactured over 3 million cars, Tesla still falls behind well-known automakers like Volkswagen, which sold nearly 9 million vehicles in 2021, and Toyota, which produced 10 million.
Related Article: Elon Musk: Tesla FSD Beta 10.13 to Release This Week - Here's What to Expect
