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Ferrari named Morgan Stanley’s ‘favorite EV stock’ for 2022

Credit: Ferrari

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Italian luxury sports car maker Ferrari (NYSE: RACE) is Morgan Stanley’s pick as the firm’s “favorite electric vehicle stock for 2022,” according to a note released by the Autos and Shared Mobility team. Led by analysts Adam Jonas, Morgan Stanley’s team of stock professionals chose Ferrari over other high-powered EV stock favorites, including Rivian and Tesla, both of which are widely considered the most promising and overall leader of the EV industry, respectively.

“Ferrari was listed as “Our new ‘Top Pick’ (replacing GM),” Morgan Stanley wrote in a note to investors released this morning. “Can justify 100% of the company’s market cap with ‘fine-art’ ICE business…leaving [for] the EV business (currently in skunkworks) for free. This makes RACE our favorite EV stock for 2022.” Ferrari was listed ahead of Rivian, which is ranked 2nd on Morgan Stanley’s list, and Tesla, which sits in fourth, behind Freyr, a Norway-based company in the business of manufacturing battery cells with sustainable energy.

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Morgan Stanley’s outlook on Ferrari is interesting, especially as the company has not technically made any formal statement regarding plans to transition to a full lineup of electric cars. The Italian company does have plans to launch its first all-electric model in 2025, company boss John Elkann said in April 2021. Ferrari’s commercial boss, Enrico Galliera, said it would not produce any BEV models until EV tech would allow the company to “produce a car that fits with our position.” Galliera said, “If we bring in new technology, then we need to bring something new to the market. That’s how Ferrari has always worked with new technology. The evolution of new technology is 100% in the DNA of Ferrari.”

The company’s position regarding EVs was only solidified in 2021, as Elkann stated during the Ferrari Q2 Earnings Call that executives welcomed regulations that would restrict the widespread production of gas-powered engines. However, there could be a substantial wait for Ferrari to make a full-fledged shift to EVs, as Elkann added, “… we’ll have changes within the energy supply, which could lead to having alternatives, for example, e-fuels or hydrogen. But that is really 2030, 2040, and most likely midpoint 2035, where we’ll see this happening. What we want to make sure is to be able to use the technologies available, which today are hybrid going to electric and exploiting those to the fullest and in the best way possible.”

Tesla Model 3 Performance charms legendary Ferrari test driver

Morgan Stanley placed an “Overweight” rating on Ferrari with a $350 price target. Ferrari shares were trading at $235.10 at the time of writing.

Interestingly, Rivian and Tesla were subsided by Morgan Stanley’s note. Rivian began deliveries of its first EV, the R1T pickup truck, in late October. Morgan Stanley’s note indicates that Rivian (NASDAQ: RIVN) is “The One” for your portfolio, based on “a clean-sheet strategy with deterministic capital (raised ~$25bn) focused on adventure and commercial fleets.” Analysts stated that 2022 will be a tumultuous year for the automaker’s stock as it attempts to ramp manufacturing. Rivian will break ground on its second U.S. facility during Summer 2022. The new plant will be located near Atlanta, Georgia.

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Rivian was given an “Overweight” rating with a $147 price target. Shares were trading at $100.65 at the time of writing.

Meanwhile, Tesla (NASDAQ: TSLA) is ranked as the fourth-best EV stock for 2022. “While Tesla is not our top EV pick, it’s arguably our most ‘important’ stock pick. Not owning Tesla means not owning the one company that could make all your other EV names obsolete. A big 4Q delivery beat is just the opening act. Gigapress and structural pack come to life in 2022.”

Tesla will also have Gigafactory Berlin and Gigafactory Texas coming to life this year, which could expand the production output by 1 million units when coupled with potential expansions at Fremont and Gigafactory Shanghai. Tesla came just shy of the 1 million unit mark that many thought the company would reach this year. However, the automaker is still the most valuable car company in the world and is the sole reason for the EV movement in 2022.

Morgan Stanley gave Tesla an “Overweight” rating with a price target of $1,200. Shares were trading at $1,143 at the time of writing.

Disclosure: Joey Klender is a $TSLA Shareholder. He currently does not own any $RACE or $RIVN shares.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Investor's Corner

Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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