Market has already decided the winner of the electric vehicle race, trader says

(CNBC) —

The stock market has already picked a winner in the race to mass electric-vehicle production, one market analyst says.

Tesla’s lofty valuation — 137 times forward price-to-earnings as of Tuesday’s close — speaks volumes about where investors are placing their bets as legacy auto manufacturers rush to develop their own EV projects, founder Todd Gordon told CNBC’s “Trading Nation” on Tuesday.

UBS Global Research weighed in on the competition in a Tuesday note, saying Volkswagen, General Motors and Hyundai were “likely to emerge as best EV re-rating stories.” The firm also cut its price target on Tesla’s stock to $660 from $730 and upped its targets for GM and Ford.

Ford is having its best year since 2009, and GM its best since 2013. Tesla is having its worst year since 2016.

The legacy automakers “will certainly gain market share in the near term on Tesla,” Gordon said.

“But if you look at the billions of miles driven that Tesla has plugged into their major data centers compared to what the other EVs have, it’s not even funny,” he said. “The one who has the most data will ultimately be victorious. So, sure, they can gain some short-term market share, but I think longer-term, … I think the market is already voting who the winner will be.” Click here to read the source article EVs

Rising Dough

Rising Dough - the question(s) that we need to think about from the reading.Which manufacturer is the winner of the electric vehicle race in your opinion, why?

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