Tesla, Rivian, Ford Business – Following the announcement that RBC has reduced its price target on Tesla stock to $340 per share from $367 per share, the stock traded lower in the premarket. More than 83,000 vehicles were shipped out of Tesla’s factory in Shanghai during the month of September, an increase of 8% from the previous month and the highest-ever monthly total for the recently upgraded plant.
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The manufacturer of electric cars and trucks issued a recall for virtually all of its vehicles to address potential steering difficulties, which caused its stock to drop by nine percent before the market opened. According to Rivian, there have been no reports of any injuries as a result of the problem.
Ford (F), General Motors (GM)
After receiving a lower rating from UBS, both Ford and General Motors saw their premarket prices drop by 3.6% and 3.5%, respectively. UBS lowered their recommendation on Ford from “neutral” to “sell,” and they lowered their recommendation on GM from “buy” to “neutral.” Following three years of unprecedented pricing power, the brokerage firm reported that the automotive industry is rapidly moving toward an oversupply of vehicles.
Procter & Gamble (PG)
P&G stock dropped by 1.3% in premarket trading after Goldman Sachs lowered their recommendation on the consumer goods giant’s shares from “buy” to “neutral.” Goldman cited concerns regarding valuation as well as possible headwinds regarding market share.
The share price of Toast increased by 3.3% in premarket trading after Mizuho upgraded the stock to “buy” from “neutral.” The investment bank stated that its research puts the profit and sales potential from the restaurant-focused technology platform provider’s services in the spotlight.
As part of its efforts to secure essential components for electric vehicle batteries, Stellantis has entered into a supply agreement with an Australian mining company called GME Resources to provide nickel and cobalt. In the beginning of this year, the car manufacturer entered into a lithium supply agreement with Vulcan Resources of Australia.
Kraft Heinz (KHC)
After Goldman Sachs upgraded the stock of the food manufacturer to “buy” from “neutral,” the stock of Kraft Heinz increased by 2% in premarket trading. According to Goldman, Kraft Heinz is one of the few consumer staples stocks for which the potential for higher profit margins has not yet been fully priced into the stock price. This is an important factor for investors to keep in mind.
Following Guggenheim’s upgrade of the stock to “buy” from “neutral,” shares of the pharmaceutical company saw a gain of 2.7% in the premarket. According to the company, Merck is in a strong position to beat estimates for its profits due, among other things, to favorable growth prospects for its key products.
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News from SNBC.com