What's going on?

America�s rootin�-tootin� electric carmaker Tesla announced plans to open a new �gigafactory� in Germany late on Tuesday � and investors said �Ja, bitte�, sending its shares up on Wednesday.

What does this mean?

Up to now, Tesla�s been building and shipping all its vehicles from the trendy and tech-friendly Bay Area. But it�s claimed its spot in the world�s parking lot with a new manufacturing hub in China, and has considered building plants in a few European locations too. The UK, Tesla reckoned, is too risky with Brexit waiting in the wing mirrors, but Germany�s capital city � the European tech hub that�s also the birthplace of the internal combustion engine � flipped all the right switches.

Tesla likely hopes its local presence will boost sales in the country, especially given Germany�s newly introduced electric vehicle subsidies. But there are roadblocks ahead too: Tesla�s factory, which should be purring by 2021, will put it in direct competition with homegrown giants Daimler � owner of Mercedes � and the world�s biggest car manufacturer, Volkswagen.

Why should I care?

The bigger picture: Can Tesla scale the wall?
While it�s fair to say Tesla is a pioneer of the electric car industry, the question remains whether it can sustainably produce better cars than its long-established rivals. They�ve been perfecting their craft for decades, and aren�t about to break down because they now have to add a battery to their vehicles. So with plenty of competition from new and existing carmakers on the road ahead, it�ll only get tougher for investors to tell which car will cross the finish line first.

For markets: Investors turn the heat off Tesla.
Tesla�s better-than-expected third-quarter profit last month might�ve helped it shed the undesirable title of this year�s most profitable �short� investment � one whose share price investors think will fall (tweet this). That title may soon be carjacked by Japanese rival Nissan, which cut its profit forecast by 70% this week.