Daiwa analyst Jairam Nathan upgraded Tesla Inc. to Outperform from Neutral with a price target of $900, down from $980. It implies an upside of 12.4 percent.
The analyst says renewed supply chain concerns combined with higher oil prices enhance Tesla’s competitive advantage over legacy internal combustion engines.
Tesla’s ability to export out of “cost-efficient” China and its history of better managing chip shortages in 2021 could strengthen its competitive position under the current Russia/Ukraine situation, Nathan tells investors in a research note.
Further, the analyst adds that higher oil prices and the potential of fuel shortages, especially in Europe, could accelerate the shift to electric vehicles.
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.