Tesla gathers paperwork to open Austin-area factory, which analysts say is key to ’22 production goals

Tesla Inc. had a record-setting end to 2021 that has analysts predicting big things from the electric vehicle manufacturer in 2022.

Now, all eyes are on the launch of the company’s factories in Austin and Berlin, which analyst Dan Ives of Wedbush Securities Inc. said will be key to Tesla (Nasdaq: TSLA) potentially doubling its production capacity this year to roughly 2 million vehicles.

To put that into perspective, Tesla delivered more than 936,000 vehicles last year — up 87% from 2020, the company’s first fully profitable year.

The Austin-area factory is expected to launch any day now. CEO Elon Musk had long targeted the end of 2021 for the start of production, though there has been no formal announcement of the factory opening.

However, Travis County spokesperson Hector Nieto said Jan. 4 that certain areas of the factory have already received certificates of compliance from the county fire marshal. Those certificates are similar to a certificate of occupancy and are necessary before a company can open a building.

It was not clear when cars would begin rolling off the assembly line. Tesla officials did not immediately return requests for comment.

Tesla’s factory, which measures at least 4.28 million square feet, is split among departments such as stamping, casting and general assembly, according to state filings. It was unclear by publication time which departments had received the certificates.

Tesla began construction on the factory in summer 2020. It is located off the State Highway 130 toll road in eastern Travis County. Tesla intends to produce its Cybertruck, Model 3, Model Y SUV and Semi tractor-trailer there.

Musk has big plans for the Austin factory, which he said recently on Twitter represents a $10 billion-plus investment “over time” that will create at least 20,000 direct jobs and 100,000 indirect jobs. That was much higher than a 10,000-job estimate Musk floated in March and the 5,000 jobs pledged during incentives negotiations.

Ives, managing director and senior equity analyst at Los Angeles-based Wedbush, said in a Jan. 2 announcement Tesla ended 2021 with a “trophy case” fourth quarter, despite the worldwide chip shortage and global logistical issues.

Tesla announced Jan. 2 that it produced 305,840 electric vehicles and delivered 308,600 during Q4, which beat its previous single-quarter record and analysts’ expectations.

“These delivery numbers were ‘jaw dropping’ and speaks to an EV demand trajectory that looks robust for Tesla heading into 2022,” Ives said in a statement.

Demand for electric vehicles is growing quickly, and automakers are planting factories across the country to keep up. Tesla, which recently moved its headquarters to Austin, is considered to be at the forefront of the industry growth as it dominates market share, said Ives, a Wall Street analyst for two decades and frequent guest on CNBC’s “Squawk Box.”

“Right now Tesla has a high-class problem of demand outstripping supply,” Ives said in his 2022 outlook for Tesla on Dec. 27. “The key to alleviating these issues is centered around the key Giga openings in Austin and Berlin … which will alleviate the bottlenecks of production for Tesla globally.”

Tesla executives told shareholders in October that the company expects to achieve 50% average annual growth over the next few years.

Courtesy of Austin Business Journal. See the full article here.