U.S-based electric vehicle manufacturer Tesla Inc (NASDAQ:TSLA) rode on Elon Musk’s success with his other company SpaceX following the successful launch of two astronauts into space on Saturday.
The successful space-bound launch by SpaceX allowed its founder Elon Musk to garner a strong credibility boost, and fortunately, that credibility trickled down to Tesla. The electric vehicle manufacturer enjoyed a strong rally on Monday’s trading session, during which the shares rallied by an overall 7.56% before ending the session at $ 898.10.
The successful SpaceX launch was a key moment for Musk, who has a reputation for going the extra mile with his impressive ideas and following through until he achieves success. Launching a space company and successfully sending astronauts to space is a more daunting task than running a company that makes electric cars. This is why investors turned optimistic about Tesla because they expect Musk to deliver with his current plans for the company.
Breaking ground for the Berlin Gigafactory
There was also some good news regarding Tesla, which may have also contributed to the rallying stock price. The company seems to have broken ground for its gigafactory, which will be based in Berlin. The factory will be built on 300 acres of land that Tesla acquired for €40 million. The gigafactory will be one of the biggest manufacturing facilities in the world. The company plans to use the massive scale to produce batteries for its vehicles, as well as its power storage products such as Tesla Powerwalls.
The gigafctory will also be a production point for electric vehicle powertrains, as well as the production of Tesla’s electric vehicles. The company plans to use the facility to ramp up the production of electric vehicles in line with the expected increase for EVs in European markets and the rest of the world. Model Y is one of the vehicles that will be manufactured at the facility, and Tesla expects to start assembling it from the gigafactory as soon as July 2021. This means that Tesla plans to speed up the construction of the massive facility.