Tesla shares accelerate higher on news the coronavirus slowdown will help grow its EV lead

Tesla stock market

Tuesday got off to a good start for Tesla shareholders, as the price for TSLA shares increased nearly 15% in early hours trading on news the COVID-19 slowdown that is affecting all automakers will be a positive for the electric vehicle (EV) maker.

Credit Suisse analyst Dan Levy upgraded Tesla from “neutral” to “underperform” on Tuesday, while at the same time maintaining a $580 price target.

In a note to investors, Levy suggests that as the coronavirus slowdown continues to heavily impact legacy automakers, their future plans for electrification will likely have to put on hold to ensure short term viability.

“[Tesla] competitively has more edge in the transition to EV as coronavirus disruption will make it more difficult for legacy automakers to balance the long-term shift to EV in the face of near-term cycle disruption.”

This need for legacy automaker to focus on their existing lineup of vehicles will only help Tesla build on their already impressive lead in the EV marketplace, even with some possible short-term impacts as consumers are attracted by the current low price of gas.

TSLA shares April 14

h/t [Business Insider]

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Senior Contributor. White Long Range AWD Model 3 owner since October 2018. EV fan since 2012 with my first Nissan Leaf | Mike@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca