Trip Chowdhry expects Tesla to continue expanding its domestic manufacturing footprint under the Trump administration
Published By: Eunice Gettys on January 9, 2017 02:44 pm EST
Earlier this week, The Country Caller reported that the race for Tesla Motors Inc. (NASDAQ:TSLA) has heated up in Europe, as the French Economic Minister flew to Tesla Factory in Fremont, CA, to meet the automaker’s business development chief Diarmuid O’Connell. However, Global Equities Research analyst Trip Chowdhry does not think that France will be the location for the company’s next Gigafactory.
Let alone France, the analyst is “almost certain” that the next Gigafactory of the company will not be located in Europe at all; not even Asia Pacific for the next couple of years at least. He believes that the company will continue expanding its domestic manufacturing footprint under the upcoming Trump administration.
After returning from the investor event at the Gigafactory 1 in Sparks, NV, Mr. Chowdhry noted in a report that Tesla CEO Elon Musk will be “very close confidant” to President-elect Donald Trump and both of them together will play a critical role to make “USA manufacturing sexy again.” He said that the Tesla chief will assist in forming a new vision of reinventing, reinvigorating, and rethinking the manufacturing sector.
More interestingly, the pro-Tesla bull stated that Mr. Musk had another meeting scheduled with Mr. Trump on January 6 when investors and analysts were invited to see the state-of-the-art manufacturing technology at the $5 billion factory. However, he ended up meeting Steve Bannon, Trump Presidency’s senior counselor and chief strategist, but the meeting minutes are unknown so far.
Mr. Chowdhry expects Tesla to build five Gigafactories in total at some point in the future. Currently, the company has two Gigafactories, one for battery and drive train production in Sparks, NV, and the other for solar panel production in Buffalo, NY. He believes that the next Gigafactory will produce batteries inside the US but has not given a precise location.
The analyst expects that the fourth Gigafactory will be in Michigan, home of the Big Three, and it will focus on glass production of both Tesla cars and home solar roofs. Lastly, he does not have any prediction for the fifth Gigafactory.
Mr. Chowdhry’s expectations might seem to be outrageous at times, but he has been spot-on on many occasions. Like take his previous prediction for instance, he was the only analyst who firmly believed that Tesla is the poster child for Trump’s Presidency.