Daiwa Securities upgraded Tesla to Outperform from Neutral lowering PT from $980 to $900

Daiwa Securities analyst Jairam Nathan upgraded Tesla’s rating to Outperform from Neutral with a price target of $900, down from $980. 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, higher oil prices and the potential of fuel shortages, especially in Europe, could accelerate the shift to electric vehicles, adds the analyst.

Source: Tesla

According to Reuters, Tesla Inc plans to start work on a new plant in Shanghai as soon as next month as part of a plan to more than double production capacity in China to meet growing demand for its cars in the country and export markets, two people familiar with the matter told Reuters.

With this new plant, Tesla will have the capacity to produce up to 2 million cars per year at its expanded Shanghai facility, the company’s main export hub, according to the people, who asked not to be identified in discussing still-private plans.