Tesla (NASDAQ:TSLA) is on a comeback tour. It lost plenty of ground last year but has been frantically working to make it up ever since. It even added some more steam today as word emerged about its next planned Gigafactory location. It’s a bid to secure primacy in the electric vehicle market, and an unexpected one at that. Tesla’s new target for a manufacturing operation is none other than Indonesia, reports note.
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While some may wonder why especially given that Tesla already has operations in China, there are some clear advantages to locating a factory in Indonesia. One of the biggest such advantages is readier access to many common minerals required for building Teslas. Indonesia has about a quarter of the world’s known nickel reserves, and that’s just for starters. In addition, the Indonesian Gigafactory would reportedly have sufficient capacity to produce as many as one million vehicles per year.
Considering that Tesla delivered a total of 1.3 million vehicles in all of 2022, that’s a huge step. Furthermore, it’s poised to expand the Austin Gigafactory to the tune of $776 million. It’s also set to expand the Berlin Gigafactory to produce up to one million cars a year as well. However, some point out that the Tesla market in Indonesia itself might be a hard sell. The average Indonesian car costs under $20,000, which is well below most Tesla models.
No matter how it may look to some, investors are clearly interested. So too, is Wall Street. Right now, analyst consensus calls Tesla stock a Moderate Buy. With an average price target of $251.48, it also comes with 105.37% upside potential.
