Tesla, Inc. TSLA has moved closer to doubling its production capacity at its plant near Berlin after receiving approval from the local environment ministry to build a new large hall. The approval covers the first phase of a three-part expansion plan, which includes constructing infrastructure for storage, a battery cell test laboratory and logistics facilities. Per the ministry, all development will occur on Tesla’s existing property.

The company has faced strong opposition from locals over its plan to increase the plant's capacity, functional since 2022, from 500,000 to 1 million vehicles annually. The capacity expansion would make it Germany's largest car plant, surpassing Volkswagen’s Wolfsburg facility. Activists protesting the expansion have been camping in treehouses near the plant for more than six months. Earlier this year, a local vote opposed tree removal for the project, although it was non-binding.

Tesla has not provided any comment. Per the company’s expansion request, submitted in July 2023, the first phase of changes could be operational in the first half of 2024. However, in August, Andre Thierig, plant director, said that Tesla was holding off on investments until it became clearer that demand for electric vehicles in Europe would recover.

Last week, Tesla introduced the CyberCab, an autonomous vehicle designed for ridesharing, alongside a 20-seater RoboVan. TSLA’s CEO, Elon Musk, announced that the CyberCab would be priced under $30,000. However, analysts were left unimpressed by the lack of specific details about Tesla’s plans to launch a ridesharing platform. Musk did not clarify how quickly Tesla could scale robotaxi production, address regulatory hurdles, or outpace competitors like Alphabet's Waymo.

Per industry experts, launching robotaxis could take several years, mainly due to challenges in ensuring safety and reliability. Issues like accidents, bad weather, complex intersections and unpredictable pedestrian behavior present significant hurdles that may take years to resolve.

TSLA’s Zacks Rank & Other Key Picks

Tesla currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the auto space are Modine Manufacturing Company MOD, BYD Company Limited BYDDY and Suzuki Motor Corporation SZKMY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOD’s fiscal 2025 sales and earnings suggests year-over-year growth of 8.44% and 18.77%, respectively. Earnings per share (EPS) estimates for fiscal 2025 and 2026 have improved by a penny and 8 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.88% and 19.52%, respectively. EPS estimates for 2024 and 2025 have each improved 7 cents and 13 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for SZKMY’s fiscal 2025 sales and earnings suggests year-over-year growth of 7.36% and 22.51%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 78 cents and 99 cents, respectively, in the past 60 days.

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