This analyst is impressed by Tesla Giga Berlin's efficiency and the demand for Tesla's EVs.
It seems we’re constantly talking about the demand for Tesla’s vehicles and the demand for EVs in general. For years, there was reportedly “no demand” for Tesla’s EVs, people didn’t want EVs, the demand had fallen off a cliff, and bankruptcy was looming. However, in reality, the demand is growing like crazy, and that has been the case for many years now.
According to a recent article published by Electrek, Tesla is currently in the midst of unprecedented demand. This comes as no surprise, as we’ve been watching and reporting for many months about the fact that Tesla can’t possibly produce enough cars to fill orders in a timely fashion. In fact, the EV maker is so backed up that it has had to delay upcoming models over and over again.
Fortunately, Tesla has opened a new factory in Germany and another in Texas. Meanwhile, the company is upgrading its Gigafactory in Shanghai, China, and it has future plans to expand in Fremont, California.
The reason we’re publishing another article about Tesla’s demand even though it’s not necessarily new news is that Wall Street analyst Pierre Ferragu of New Street Research just attended an event for analysts that was held by Tesla at its Gigafactory in Berlin. Ferragu had the opportunity to see the factory and speak with the EV maker’s management team.
While automakers across the globe struggle to get parts and produce cars, Tesla has been able to continue to show consistent successes with regard to production, deliveries, and profits. Tesla is raising the prices on all of its models often, and people are still placing orders much more quickly than the automaker can fill them. Throw in the fact that gas prices have soared and it’s also difficult to get most rivals’ models, and Tesla is in a uniquely positive position.
That said, there comes a point when people will get tired of waiting for their cars. Tesla has actually gone so far as to stop taking orders for some models until it can better satisfy demand. Fortunately, we’ve seen several positive reports lately of delivery times for Tesla’s vehicles finally beginning to become more manageable. Ferragu shared in a note to his clients via Electrek:
“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. Electric cars are so popular that for Tesla and their competitors, market shares will mostly be dictated by their ability to ramp volumes.”
The analyst seemed most impressed with how efficient Tesla’s operations are at Giga Berlin. He shared that it’s much more efficient than Fremont, logistics are simplified, and the factory design makes processes more streamlined. Ferragu believes that over the long term, Tesla could potentially be a $10 trillion company by 2030. However, that would only be the case if Tesla was able to meet its goal of producing 20 million EVs annually by that time.