By Sam Boughedda
Investing.com -- Daiwa analyst Jairam Nathan upgraded Tesla Inc (NASDAQ:TSLA) shares to outperform from neutral Friday, telling investors in a note that renewed supply chain concerns and higher oil prices will enhance the company's competitive advantage over legacy internal combustion engines.
Tesla shares are up over 1% Friday around the $812 mark. In his note, Nathan also lowered his price target on Tesla to $900 from $980.
Nathan said rising energy prices will likely “accelerate the shift to EVs and Tesla is best positioned to satisfy higher demand with capacity expansion in China and the US.”
He added that the company's ability to export out of "cost-efficient" China and its record of better managing chip shortages in 2021 could strengthen its position under the current Russia/Ukraine situation.
“While start of production at the Berlin plant could be delayed, recent media reports of Tesla increasing capacity at its Shanghai facility gives it more flexibility to meet European demand," explained Nathan