Things weren’t looking good for electric vehicles for a while there. A souring global economy and uncertainty all over the spectrum left people’s plans to buy a new car in the dust. Yet new reports—and gains from Tesla (NASDAQ:TSLA)—say otherwise.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Tesla’s surge traces back to a report from China Merchants Bank International, which notes that Tesla should be looking for strong first-quarter sales, despite earlier reports that suggested contracting demand. Especially the reports that noted Tesla halted production at some factories in the area. It also helped that Moody’s hiked Tesla’s credit rating from “junk” to “Baa3”.
Tesla wasn’t the only beneficiary here, though, setting up a nice halo effect throughout the industry. Rivian Automotive (NASDAQ:RIVN) popped up thanks to a shift from Adam Jonas at Morgan Stanley. Even the more recent entrants in the electric vehicle market, like Ford (NYSE:F), got a leg up as their moves to produce electric vehicles were increasingly recognized.
Nevertheless, the big winner so far is the one who kicked it all off, Tesla. Up nearly 7%, it’s considered a Moderate Buy with 8.66% upside potential thanks to its average price target of $212.89 per share.
