Here's why Tesla shares are on fire again

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Here's why Tesla shares are on fire again
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Tesla shares have been on a tear in recent weeks as Elon Musk marked the company's first deliveries from its new Berlin factory, easing investors' fears about whether the EV maker would receive the necessary approvals from the German government

"I'd say 30% of investors we talked to over the last six months thought Berlin was never going to open because of the red tape and bureaucracy," said Dan Ives, tech analyst at Wedbush Securities."Many investors were fearing [Tesla] would never have a beachhead in Europe and it would just be an empty factory."Model Y electric vehicles stand on a conveyor belt at the opening of the Tesla factory near Berlin earlier this month.

Although shares closed narrowly lower Wednesday, they posted gains in 10 of 12 trading days since hitting that low, gaining 43% in that short stretch alone.The rally has prompted Tesla to announce that it will ask its shareholders to approve a second stock split. Shares have more than doubled since the company's initial split, in August 2020.

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