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Electric vehicle and energy storage equipment manufacturer and designer Tesla Inc (NASDAQ:TSLA) is having a record run on the stock market. Since the market opened today, Tesla's shares touched $492.14 - a new all-time high price for a company that's also been famous for being the darling of short-sellers. The bullish run comes on the back of Tesla's successes with the Gigafactory 3 in Shanghai, China, as the company looks to expand its manufacturing globally.
While Tesla's currently busy with its third Gigafactory, the company has already confirmed plans for another plant in Europe. This facility will be based in the German state of Brandenburg, and as per reports from government officials, the plant will provide employment to at least 3,000 people. Now, with production streamlining at the Shanghai Gigafactory, the German press is reporting that Tesla's Gigafactory 4 in Brandenberg has won parliamentary approval by the state's finance committee.
Tesla's Gigafactory 4 In Brandenberg, Germany Has Secured Approval From State Legislature
Quoting a statement from Brandenberg's Minister of Finance and Europe Ms. Katrin Lange, media reports confirm that Tesla's Gigafactory has secured approval from Brandenberg's parliamentary committee on finance, with the details of the approval concerning themselves with the final price of the 300-hectare plot that the plant will be constructed on. The current agreement between Tesla (NASDAQ:TSLA) and local authorities have put the price for this piece of land at €40.9 million, but with the automaker's board yet to approve the figure the amount might be revised in the future.
Brandenberg is located in the region of Germany formerly under the control of Union of Soviet Socialist Republics, U.S.S.R. As a result, the region's economic systems did not progress to the level achieved by its Western brethren, and the Brandenberg government expects that Tesla's presence in the region will change this. To that end, the American company is expected to invest around €4 billion Euros in constructing its latest Gigafactory in Germany.
In addition to Ms. Lange, Ministers for Economy and for Agriculture and Environment were also present at the meeting that gave Tesla the go-ahead. Since progress on the Gigafactory 4 is in its earliest stages, we are yet to see any official numbers from Tesla (NASDAQ:TSLA) for the plant's manufacturing targets. However, reports have claimed that the automaker hopes to push out as much as 500,000 vehicles from the factory at its peak production. Initial reports for the facility also claimed that the electric-vehicle and energy storage products manufacturer intends to push out 150,000 cars from the Gigafactory 4 per month.
Tesla has been notorious for production delays as it struggled to streamline manufacturing at its first Gigafactories located in the United States. But the company seems to have narrowed out the kinks as time has passed, and Wall Street is appreciative of the fact. The automaker has rocketed to new highs on the stock market, and its upcoming earnings release will indicate the impact a record number of vehicles produced and delivered in 2019 has had on the profits and revenue.