What You Missed This Week in EVs and Clean Energy

Institutional investors and professional traders rely on The Fly to keep up-to-the-second on breaking news in the electric vehicle and clean energy space, as well as which stocks in these sectors that the best analysts on Wall Street are saying to buy and sell.

From the hotly-debated high-flier Tesla (TSLA), Wall Street’s newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with “Charged,” a weekly recap of the top stories and expert calls in the sector.

JUNE DEMAND: Mizuho raised the firm’s price target on Tesla to $300 from $230, while keeping a Buy rating on the shares. The firm expects June quarter auto demand to improve in China and remain strong in the U.S. despite macro headwinds. Mizuho sees Tesla “driving profitability at scale” and believes the company will remain the global electric vehicle leader for the next decade.

BofA also raised the firm’s price target on Tesla to $300 from $225 but kept a Neutral rating on the shares. The firm is rolling forward its valuation basis to 2024 and subsequently adjusting price targets across its autos coverage, noting that its targets generally move higher for original equipment manufacturers and suppliers. Since 2020, the auto industry has “been starved for volumes, but the tide is turning,” says BofA, which notes that volumes have exceeded expectations in 2023 so far, particularly in the U.S., while volumes in Europe have “surprised to the upside.”

TESLA INVESTMENT: French Finance Minister Bruno Le Maire on Sunday said he was “very hopeful” Tesla Chief Executive Elon Musk will pick France for a substantial investment linked to the production of electric vehicles in Europe, according to Reuters. Musk recently met French government officials, including President Emmanuel Macron, as he explores options for future production sites. Asked whether an investment could be linked to battery cells or other parts of Tesla’s business, Bruno Le Maire told LCI television “several options are on the table.”

Click here to check out Tesla’s recent Media Buzz Sentiment as measured by TipRanks.

POSITIVE HEADLINES: DA Davidson upgraded Rivian Automotive to Neutral from Underperform with a price target of $18, up from $11. The cadence of headlines for the company is turning more positive, the firm tells investors in a research note, noting that its imminent entry into Europe with its delivery van was expected eventually, but comes far earlier than anticipated. DA Davidson further states that Rivian’s Q2 deliveries were short of its model, but they beat consensus expectations. The firm still sees many reasons to be cautious on the stock, however, especially given the new EV product introductions from legacy peers such as the Mercedes EQB and the forthcoming Escalade IQ.

Wedbush raised the firm’s price target on Rivian Automotive to $30 from $25 and maintained an Outperform rating on the shares. The company is “finally making a major turn towards executing on its longer-term business modal,” Wedbush tells investors in a research note. The firm adds that the demand remains “firm” for Rivian’s “unique” electric vehicle model lineup while production appears to “now be on the road to success” as seen with stronger deliveries in Q2. The higher price target reflects further confidence in Rivian hitting or exceeding its delivery targets heading into the second half of 2023 and 2024, writes Wedbush.

BUY PLUG POWER, CANADIAN SOLAR: Citi initiated coverage of Plug Power (PLUG) with a Buy rating and $13 price target. The company has positioned itself at the center of the hydrogen economy through vertical integration, the firm tells investors in a research note. Citi says Plug Power has strong customer relationships, sufficient liquidity, a path to profitability and diversified assets. The firm believes the company will act as an enabler of hydrogen switching and capture near to long term opportunities through the entire value chain.

UBS upgraded Canadian Solar (CSIQ) to Buy from Neutral as it states that the firm’s sum-of-parts analysis suggests that the value of its holdings in CSI Solar A-shares is underappreciated by the market, currently pricing in just 17% of the value of A-shares. UBS sees upside potential in Canadian Solar from the narrowing of the valuation gap and potential for buybacks over the long-term.