TD Cowen initiates coverage of US automakers General Motors (GM) and Tesla (TSLA), giving them both Buy ratings. TD Cowen equity analyst Itay Michaeli joins Market Domination co-hosts Julie Hyman and Josh Lipton to explain why he singled out these two names as defensive plays.
“Defensive franchises to us in auto are the rare few markets where many of the headwinds that we read about and look at in the automotive industry really don’t apply to as meaningfully or even at all,” Michaeli explains.
He says, “One of the strongest end markets, we think globally, in automotive is the North America pickup truck market,” highlighting GM and Ford (F).
For Tesla, Michaeli says that its electric vehicle (EV), automated vehicle (AV), and software projects “while having these strong core franchises there in place” put the EV pioneer in this defensive auto player category.
Watch the video above to hear the analyst’s thoughts on the impact of Tesla CEO Elon Musk’s shift into politics, his outlook for the EV maker, and more.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
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