In a volatile day of trading, three major players in the automotive and biotech sectors are making headlines. Tesla (NASDAQ: TSLA), Rivian (NASDAQ: RIVN), and Moderna (NYSE: MRNA) are each experiencing significant stock movements driven by analyst updates, strategic partnerships, and vaccine efficacy data. Here’s a closer look at the latest developments for these closely watched stocks.
Tesla (TSLA) Stock Gains as Stifel Nicolaus Initiates Coverage with “Buy” Rating, Price Target of $265
Tesla’s stock is rising, gaining 4.26% to reach $195.34 per share as of 11:58 AM EDT. The surge comes as Stifel Nicolaus initiated coverage on the electric vehicle maker with a “buy” rating and a price target of $265.00, well above the current trading price.
This positive outlook contrasts with the overall analyst consensus, which maintains a “Hold” rating and a more conservative price target of $187.30.
Despite the day’s gains, Tesla’s year-to-date performance remains negative, down 21.46% and underperforming the S&P 500.
The company recently reported quarterly earnings of $0.35 per share, meeting estimates, though revenue of $21.30 billion fell short of expectations. With a market capitalization of $622.404 billion and a P/E ratio of 47.94, Tesla remains dominant in the EV market despite increasing competition.
Rivian (RIVN) Gets a $5 Billion Lifeline from Volkswagen, Stock Surges
Rivian’s stock is experiencing a dramatic surge, up 26.80% to $15.16 per share, following news of a potential $5 billion investment from Volkswagen.
The proposed deal would involve forming an equally controlled joint venture to share EV architecture and software, potentially transforming Rivian’s market position and financial outlook.
Analysts are hailing the partnership as a “core game changer” for Rivian. The funding is expected to bolster the company’s cash reserves and support the development of new models, including the R2 SUVs and R3 crossovers.
However, some analysts caution that the funding could dilute Rivian’s share price. The news has propelled Rivian’s market capitalization to $15.094 billion, though the company still reports negative earnings, with an EPS of -$5.77.
Moderna (MRNA) Stock Faces Downward Pressure After Release of Efficacy Data for Newly Approved RSV Vaccine
Moderna’s stock is facing downward pressure, declining 5.40% to $130.17 per share, following the release of efficacy data for its newly approved RSV vaccine, mRESVIA.
The latest data shows 50% vaccine efficacy against two or more lower respiratory tract disease symptoms, which some analysts consider to be on the lower end of expectations.
The FDA approved the vaccine last month for adults 60 and older and is now under review by the CDC’s Advisory Committee on Immunization Practices (ACIP).
The committee’s opinion will determine the vaccine’s market rollout. Moderna faces stiff competition from GSK and Pfizer, who already have approved RSV vaccines. Despite the day’s losses, Moderna’s year-to-date return remains positive at 30.89%, outperforming the S&P 500.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
