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The key to Tesla 's biggest winning streak on record might lie in artificial intelligence, according to top auto analyst Adam Jonas. "Tesla stock can be streaky, but this most recent run sets its record for most consecutive days of stock price appreciation," Morgan Stanley's Jonas said in a note Tuesday. Today, it's all about AI," Jonas wrote in a June 5 note. The electric vehicle company has only notched winning streaks of eight days or more just eight other times. One month after the streak's end, Tesla shares outperformed the S & P 500 by 3.4% on a median basis.
Persons: Tesla, Adam Jonas, Morgan Stanley's Jonas, Meta, Jonas, — CNBC's Michael Bloom Organizations: Nvidia, Apple, Microsoft, Auto
Morgan Stanley has replaced Tesla as its firm-wide top pick with Ferrari . Analyst Adam Jonas increased Ferrari's price target by $30 to $310, implying the stock could rally 14.2% over the next year. Nearly half of the increase to Ferrari's price target stems from foreign exchange, as the dollar's recent fall against the euro helped the Italy-based company, Jonas said. To be sure, Jonas still rates Tesla as overweight and has a $220 price target on the stock, implying upside of 11.2% from Friday's close. RACE TSLA YTD mountain Ferrari and Tesla — CNBC's Michael Bloom contributed to this report.
Ford's EV sales – currently at 3.6% of its monthly total sales – have been a major focus of Wall Street. Amid talk of an EV pricing war , who will win: Tesla, or Ford? Ford Bank of America in a Jan. 30 note called both Ford and Tesla's decision to cut prices "odd." Tesla Most analysts seem to be more optimistic on Tesla at present. For Tesla, analysts have an average price target upside of 1.8%, and 65% have a buy rating on the stock.
But Elon Musk's automaker remains poised to lead the EV race in 2023, Morgan Stanley said this week. EV supply outpacing consumer demand next year will benefit Tesla. Tesla will "widen its lead in the EV race" next year, Adam Jonas said. Even with the increased competition, Tesla may be in a position to extend its lead in 2023, Jonas wrote. All automakers, Tesla included, have struggled to get the cost of their EVs down.
Electric vehicles remain hot Meanwhile, electric vehicles have a tailwind from new legislation. Meanwhile, Cantor Fitzgerald began coverage of Rivian on Dec. 20 with a $30 price target, which marks nearly 57% upside from Friday's close. The average analyst has a target price of $44.88 on the stock, reflecting potential upside of 134%, according to FactSet. Legacy automakers try to catch up Ford and General Motors are trying to gain ground within electric vehicle production. Goldman Sachs' Delaney said the firm currently prefers GM to Ford given its "head start" on electric vehicles.
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