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You’re here (TSLA) – Get a report The stock gained on Monday after analysts at Jefferies upgraded their stock rating, predicting stocks will rise 22% over the next 12 months as the electric automaker continues to prove both a leader and an innovator in the market for electric vehicles and mass production batteries.
In a research note to customers, Jefferies analyst Philippe Houchois and his team upgraded Tesla to buy neutral and raised their one-year price target to $ 850 from $ 700 on expectations that automakers in general will be able to increase their margins because they operate with less but better distributed capital.
Specific to Tesla, Houchois and his group said they expected the electric car pioneer led by CEO Elon Musk to benefit over others who are also getting into the EV game by a ” lack of legacy issues ”, and while the demand for electric vehicles continues to accelerate. .
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Replenishing dealer inventories will be the first test for companies, with lower product complexity and higher direct selling the industry’s future structurally better drivers of returns, wrote Houchois and his research team.
For other automakers, however, the outlook looks less optimistic. Investment bank downgrades rating on Daimler (DAIMF) maintain and lowered its price target to € 82 from € 95, noting that while they like the company’s EV transformation trajectory, the increase seems limited for now.
The Houchois team has also lowered its price target on General Motors (DG) – Get a report at $ 53 from $ 68, noting that the U.S. car and truck maker’s 2022 production run looks small compared to rivals Ford (F) – Get a report and Stellantis (STLA) – Get a report.
Meanwhile, Tesla reportedly told workers at its Nevada battery plant that they would be required to wear masks indoors from Monday, regardless of vaccine status, joining the growing number of companies with mandates such as the increase in COVID-19 cases.
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The company cited the spread of the highly contagious Delta variant of the virus and updated the guidance from the Centers for Disease Control and Prevention in its policy change. The Nevada government has said it could impose a mask warrant this week in the county where the Tesla plant is located if transmission rates do not improve.
Tesla shares rose 1.17% to $ 707.30 in pre-market trading. The stock has fallen 4.2% year-to-date. General Motors shares were down 0.82% to $ 54.60; Ford shares ended the trading day Friday up 0.66% to $ 13.80.
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