The environment ministry of the German state of Brandenburg has approved Tesla, Inc.’s (NASDAQ: TSLA) Gigafactory that is being built outside Berlin, StreetInsider.com reported citing German newspaper Handelsblatt.
A statement by the ministry said, “The approval procedure for the e-car and battery factory of the U.S. company Tesla in Gruenheide in Brandenburg is nearing completion.”
The ministry also said the approval does not mean that the EV maker can immediately start production at the factory. It still needs to clear a legal issue related to the usage of water.
Tesla plans to manufacture approximately 500,000 cars as well as batteries at the factory every year.
Based out of Texas, Tesla manufactures and sells fully electric vehicles, solar energy generation systems and energy storage products. It also operates a network of vehicle service centers and Supercharger stations.
TSLA stock closed 4.6% down on Thursday. It lost another 2.4% in after-hours trading to end the day at $819.55.
Wall Street’s Take
Recently, Bernstein analyst Toni Sacconaghi maintained a Sell rating on the stock but raised the price target from $300 to $450 (46.4% downside potential).
The analyst said, “Tesla’s growth stands out even among tech stocks, one reason shares warrant a big valuation.”
Overall, the stock has a Moderate Buy consensus rating based on 15 Buys, 7 Holds and 6 Sells. The average TSLA price target of $1,068.40 implies 27.3% upside potential. Shares have gained 35.1% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Tesla’s performance.
According to the tool, compared to the previous year, Tesla’s website traffic registered a 36.6% decline in global visits year-to-date.
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