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.
US Auto Stock Rankings for FY 22 | Morgan Stanley/Adam Jonas
Ferrari is the new ‘Top Pick’ ?? $RACE$GM$RIVN$TSLA pic.twitter.com/KRcbjahHOb
— David Tayar (@davidtayar5) January 4, 2022
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.
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.
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.
Investor's Corner
Tesla “best positioned” for Trump tariffs among automakers: analyst
Ives has a price target of $315 per share for the electric vehicle maker.

Wedbush analyst Dan Ives recently shared his thoughts about Tesla (NASDAQ:TSLA) amidst the Trump administration’s tariffs. As per Ives, Tesla is best-positioned relative to its rivals when it comes to the ongoing tariff issue.
Ives has a price target of $315 per share for the electric vehicle maker.
Best Positioned
During an interview with Yahoo Finance, the segment’s hosts asked about his thoughts on Tesla, especially considering Musk’s work with the Trump administration. Musk has previously stated that the effects of tariffs on Tesla are significant due to parts that are imported from abroad.
“When it comes to the tariff issue, they are actually best positioned relative to the Detroit Big Three and others and obviously foreign automakers. Still impacted, Musk has talked about that, in terms of just auto parts,” Ives stated.
China and Musk
Ives also stated that ultimately, a big factor for Tesla in the coming months may be the Chinese market’s reactions to its tariff war. He also noted that the next few quarters will be pivotal for Tesla considering the brand damage that Elon Musk has incited due to his politics and work with the Trump administration.
“When it comes to Tesla, I think the worry is where does retaliatory look like in China, in terms of buying domestic. I think that’s something that’s a play. And they have a pivotal six months head, in terms of what everything we see in Austin, autonomous, and the buildout.
“But the brand issues that Musk self-inflicted is dealing with in terms of demand destruction in Europe and the US. And that’s why this is a key few quarters ahead for Tesla and also for Musk to make, in my opinion, the right decision to take a step back from the administration,” Ives noted.
Investor's Corner
Tesla negativity “priced into the stock at its current levels:” CFRA analyst
The CFRA analyst has given Tesla a price target of $360 per share.

In recent comments to the Schwab Network, CFRA analyst Garrett Nelson stated that a lot of the “negative sentiment towards Tesla (NASDAQ:TSLA) is priced into the stock at its current levels.”
The CFRA analyst has given Tesla a price target of $360 per share.
Q1 A Low Point in Sales
The CFRA analyst stated that Tesla’s auto sales likely bottomed last quarter, as noted in an Insider Monkey report. This was, Nelson noted, due to Q1 typically being the “weakest quarter for automakers.” He also highlighted that all four of Tesla’s vehicle factories across the globe were idled in the first quarter.
While Nelson highlighted the company’s changeover to the new Model Y as a factor in Q1, he also acknowledged the effects of CEO Elon Musk’s politics. The analyst noted that while Tesla lost customers due to Musk’s political opinions, the electric vehicle maker has also gained some new customers in the process.
CFRA’s Optimistic Stance
Nelson also highlighted that Tesla’s battery storage business has been growing steadily over the years, ending its second-best quarter in Q1 2025. The analyst noted that Tesla Energy has higher margins than the company’s electric vehicle business, and Tesla itself has a very strong balance sheet.
The CFRA analyst also predicted that Tesla could gain market share in the United States because it has less exposure to the Trump administration’s tariffs. Teslas are the most American-made vehicles in the country, so the Trump tariffs’ effects on the company will likely be less notable compared to other automakers that produce their cars abroad.
Investor's Corner
Tesla average transaction prices (ATP) rise in March 2025: Cox Automotive
Tesla Model Y and Model 3 saw an increase in their average transaction price (ATP) in March 2025.

Data recently released from Cox Automotive’s Kelley Blue Book has revealed that electric vehicles such as the Tesla Model Y and Model 3 saw an increase in their average transaction price (ATP) in March 2025.
Cox Automotive’s findings were shared in a press release.
March 2025 EV ATPs
As noted by Cox, new electric vehicle prices in March were estimated to be $59,205, a 7% increase year-over-year. In February, new EV prices had an ATP of $57,015. The average transaction price for electric vehicles was 24.7% higher than the overall auto industry ATP of $47,462.
As per Cox, “Compared to the overall industry ATP ($47,462), EV ATPs in March were higher by nearly 25% as the gap between new ICE and new EV grows wider. EV incentives continued to range far above the industry average. In March, the average incentive package for an EV was 13.3% of ATP, down from the revised 14.3% in February.”
Tesla ATPs in Focus
While Tesla saw challenges in the first quarter due to its factories’ changeover to the new Model Y, the company’s ATPs last month were estimated at $54,582, a year-over-year increase of 3.5% and a month-over-month increase of 4.5%. A potential factor in this could be the rollout of the Tesla Model Y Launch Series, a fully loaded, limited-edition variant of the revamped all-electric crossover that costs just under $60,000.
This increase, Cox noted, was evident in Tesla’s two best-selling vehicles, the Model 3 sedan and the Model Y crossover, the best-selling car globally in 2023 and 2024. “ATPs for Tesla’s two core models – Model 3 and Model Y – were higher month over month and year over year in March,” Cox wrote.
Cox’s Other Findings
Beyond electric vehicles, Cox also estimated that new vehicle ATPs held steady month-over-month and year-over-year in March at $47,462, down slightly from the revised-lower ATP of $47,577 in February. Sales incentives in March were flat compared to February at 7% of ATP, though they are 5% higher than 2024, when incentives were equal to 6.7% of ATP.
Estimates also suggest that new vehicle sales in March topped 1.59 million units, the best volume month in almost four years. This was likely due to consumers purchasing cars before the Trump administration’s tariffs took effect. As per Erin Keating, an executive analyst at Cox, all things are pointing to higher vehicle prices this summer.
“All signs point to higher prices this summer, as existing ‘pre-tariff’ inventory is sold down to be eventually replaced with ‘tariffed’ inventory. How high prices rise for consumers is still very much to be determined, as each automaker will handle the price puzzle differently. Should the White House posture hold, our team is expecting new vehicles directly impacted by the 25% tariff to see price increases in the range of 10-15%,” Keating stated.
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