Tesla’s stock rises toward 11th straight gain as company seen ‘playing chess while others are playing checkers’

Tesla Inc.’s stock was on track to rise for the 11th straight session as the company won praise for its move to ink a charging agreement with rival General Motors Co.

Shares of Tesla TSLA, +4.06% were up 4% in Friday’s premarket action, following the announcement that owners of GM GM, +1.06% vehicles would be able to access 12,000 Tesla “Superchargers” in North America. That arrangement would mirror a similar one between Tesla and Ford Motor Co. F, +1.18% that was inked earlier.

Tesla’s openness to allowing competitors onto its network shows the company is “playing chess while others are playing checkers,” according to Wedbush analyst Daniel Ives, as he lifted his price target on the stock to $300 from $215 and added the name to Wedbush’s “best ideas list.”

“For Tesla, we believe this is a large monetization opportunity for the company in its supercharger story, adding to its growing sum-of-the-parts valuation that we now peg at $300 per share with its developing energy business along with its well-established EV machine,” Ives wrote in his note to clients.

According to the calculations made by the analyst, it is estimated that Ford and GM, collectively, could contribute approximately $3 billion to Tesla’s electric vehicle (EV) charging revenue in the coming years.

This projection suggests that Tesla may benefit from collaborations or partnerships with these traditional automakers, as they would potentially rely on Tesla’s charging infrastructure to support their electric vehicle offerings.

However, it’s important to note that the accuracy of such projections depends on various factors, including the specific terms of any potential agreements and the market dynamics surrounding EV adoption and charging infrastructure expansion.

Tesla’s stock is on track for its longest winning streak since January 8, 2021, with gains in 11 consecutive trading sessions. This information is based on data from Dow Jones Market Data. Throughout this 10-session streak, Tesla’s stock has risen by 27.4% during regular trading hours.

This impressive performance indicates a positive market sentiment and investor confidence in the company, which is likely attributed to factors such as strong delivery numbers, positive analyst projections, and ongoing developments in the electric vehicle industry.

According to analyst Dan Ives, the partnership between Tesla and General Motors (GM) was a wise move for GM as it positions the traditional Detroit automaker for a successful electric vehicle (EV) transformation in the coming years.

Ives commend GM CEO Mary Barra for making this strategic decision. As a result, GM’s stock experienced a premarket increase of over 3% on Friday, reflecting positive market sentiment towards the company’s EV endeavors and the potential benefits of the partnership with Tesla. This partnership is seen as a step towards securing GM’s position in the evolving EV market.

According to analyst Dan Ives, Tesla is expected to achieve its target of delivering 1.8 million units this year. Furthermore, he believes that the company will overcome any temporary margin challenges in the next 1-2 quarters and regain its growth trajectory by fiscal 2024.

Ives also highlights Tesla’s Nevada battery production as a potential strategic advantage, indicating the company’s focus on sustainable energy solutions.

Additionally, the upcoming launch of the Cybertruck is expected to contribute to Tesla’s growth, further enhancing its market position. Overall, Ives sees positive developments and growth prospects for Tesla shortly.

Tesla’s stock rises toward 11th straight gain as company seen ‘playing chess while others are playing checkers’

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