Tesla Pops After UBS Upgrade, Return To Normalcy For China-Based Sales

Tesla stock is popping 3.5% in the pre-market session after the company expected Chinese sales numbers that showed a return to normalcy and the company was slapped with an upgrade by UBS. 

The company sold 33,544 cars in May in China, according to China’s Passenger Car Association. This marks a 212% sequential jump, but April’s sales were hampered by China’s ongoing Covid lockdowns. 

At the same time, the stock’s current level provides an “attractive entry point”, according to a note from UBS out Thursday morning.

The company’s operational outlook is “brighter than ever” according to the note. The firm upgraded the stock to buy from neutral, and maintained its $1,100 price target on the name. 

The company’s “record- high order backlog and ramping up of two new gigafactories, along with expected margin momentum” were in focus for analyst Patrick Hummel, according to a Thursday morning Bloomberg wrap up.

UBS says Tesla has “structural advanatges in ‘mission-critical’ areas, including with vertical integration in semiconductors and with software and batteries. 

The firm also said “stable dominant BEV market share of about 20%” will support Tesla becoming one of the  world’s top three automakers by 2030.