Tesla (TSLA) is building a gigafactory in Germany that it plans to use to produce electric cars, starting with the Model Y. However, some German environmental groups are uncomfortable with the project and seek to halt the construction work, according to a Reuters report.
Tesla is constructing the gigafactory near Berlin in Germany’s Brandenburg state. Brandenburg’s environmental authority granted the company a provisional permit for the construction. (See Tesla stock analysis on TipRanks)
But environmental groups Gruene Liga and NABU have objected to that permit. The groups are concerned that the gigafactory will produce highly poisonous gas. They say Tesla has not sufficiently clarified the measures it will take to prevent the gas from escaping from the plant. Additionally, the groups say Tesla has not obtained the necessary permit to produce battery cells at the facility.
The groups want state authorities to file for a suspension of Tesla’s gigafactory permit by June 16, or else they will go to court.
Goldman Sachs analyst Mark Delaney recently reiterated a Buy rating on Tesla stock with a price target of $860. The analyst’s price target implies 41% upside potential.
Delaney reiterated the bullish rating after Tesla began deliveries of the Model S Plaid, the advanced version of the Model S. The car can accelerate from 0 to 60 MPH in less than two seconds, with Tesla saying it is the world’s fastest-accelerating production car.
“While the market for the Plaid itself is relatively small, we believe it is an important product,” noted Delaney.
Consensus among analysts is a Hold based on 10 Buys, 7 Holds, and 6 Sells. The Tesla average analyst price target of $632.10 implies 3.64% upside potential to current levels.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in TSLA is currently Positive. The cumulative change in holdings across all 16 funds that were active in the last quarter was an increase of 229,100 shares.
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