This article was originally published on TipRanks.com
Electric car maker Tesla Inc. (TSLA) is facing local protests and red tape at its Berlin-Brandenburg Gigafactory, according to CNBC. Shares of Tesla closed up 5.8% at $1,067 on December 23.
Tesla’s ambitious Gigafactory in Germany is in the final stages of construction and poised to start production in January 2022. However, the site’s development has faced a series of hurdles from local environmentalists who have accused the company of violating construction norms and potential accident risks.
Recently, the plant’s water pumping facility has drawn the attention of environmentalists. The Gigafactory is expected to consume a lot of water annually, which could hamper the water supply to residents and other commercial setups in the region. The case was up for hearing in the administrative court in Frankfurt (Oder) in early December, but was postponed.
The German Gigafactory is going to be the key asset for Tesla’s manufacturing facilities in Europe. The plant will create around 40,000 jobs for the local economy shortly and has been appreciated by the mayor of the town of Gründheide, calling it a “once-in-a-lifetime chance” to stimulate the local economy.
The date for the next hearing has not been finalized yet, and this could prove to be a major detriment to Tesla’s production plans for 2022.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 13 Buys, 8 Holds, and 5 Sells. The average Tesla price target of $987.13 implies 7.5% downside potential to current levels. Meanwhile, shares have gained 60.8% over the past year.
Hedge Funds Activity
Amid the chaos of the share sale, some of the Best Hedge Funds have penalized the dominant player in electric vehicles stocks Tesla, over the past quarter.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in TSLA is currently Very Negative, as 14 hedge funds decreased their cumulative holdings of the stock by 1.9 million shares in the last quarter.
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