Ride-hailing giant Uber’s (NYSE:UBER) push to drive electric vehicle (EV) adoption is a positive development for EV giant Tesla (NASDAQ:TSLA). Per a Reuters report, Uber is working with Tesla and is offering its drivers an incentive of $2,000 in addition to a federal tax credit to buy Tesla’s Model 3 and Model Y.
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According to the report, Uber is providing drivers with referral codes to buy vehicles directly from Tesla’s factory. To qualify for the incentive, drivers must purchase and take vehicle delivery by March 31 and complete 100 trips by May 15. Additionally, Uber has started sharing data with Tesla, offering information on locations where its drivers need charging infrastructure the most, particularly in regions with frequent trip activity.
Uber’s move to promote EVs will likely drive the adoption of Tesla cars. Against this background, let’s look at what the Street recommends for TSLA stock.
Is Tesla a Buy or Sell?
Despite concerns about softening demand due to higher interest rates and increased competition, Tesla stock has gained over 67% in one year. However, ongoing pressure on its margins keeps analysts sidelined.
Tesla stock has a Hold consensus rating based on 12 Buy, 13 Hold, and five Sell recommendations. Analysts average price target of $249.92 implies 13.65% upside potential.
