- Tesla shares are racing higher after the company signed on Rivian for its North American EV charging network.
- Wall Street analysts are sticking with TSLA stock.
Investors are finding more reasons to reward Tesla stock. Elon Musk’s company has just inked a partnership with industry rival EV maker Rivian for rights to its charging station standard. The deal includes access to Tesla’s network of 12,000 charging stations in North America. It’s becoming a trend, as U.S. automakers Ford and General Motors have already signed up.
Tesla stock is up over 2% out of the gate, taking shares above the $266 level for a market cap of $839.7 billion. Tesla stock hasn’t been in $260 territory since the end of Q3 2022. Shares remain below their 52-week high of over $300 per share, but at this rate, they could recapture that level sooner than later.
In the past month, Tesla’s market value has ballooned by roughly $250 million. Investors are convinced that the outlook for profits is bullish, and the latest deal with Rivian only strengthens that argument.
AI Fueling the Gains
The artificial intelligence boom also appears to be driving Tesla stock as individual investors jump onto the AI bandwagon. The idea that is that while AI tech mostly focuses on chat robots for the time being, like ChatGPT, it is headed in the direction of driverless vehicles, which plays into Tesla’s strength.
Morgan Stanley analyst Adam Jones said in a report, “We think the market wants to believe Tesla is an AI name first, an auto company second.”
Rivan will gain access to Tesla’s charging stations starting in the spring of 2024. The company also plans to incorporate Tesla-compatible charging port standards into its cars starting in 2025. The more companies that sign up for Tesla’s charging standard, the more revenue that Tesla stands to make.
Wall Street Bullish on TSLA
Wall Street analysts are bullish, with Piper Sandler reiterating its overweight rating on the stock. The analyst firm says it’s sticking by the stock despite questions surrounding the accuracy of Tesla’s EV sales in China.