The Tesla (TSLA) stock was up 2.38% and was leading the pack higher with a 9.3% gain. Gas prices continue to surge, and electric car stocks remain red hot on market.
Higher gas prices mean more consumer interest in electric cars.
On the one hand, rising gas prices have people thinking that now’s a great time to buy both electric cars and electric car stocks. According to the latest data from GasBuddy.com, gas prices have topped $5 a gallon in California, are getting close to $5 in Hawaii, and have already passed $4 in much of the Pacific Northwest and Northeast.
Meanwhile, Twitter is starting to fill up with posts from Tesla-owners bragging about how much cheaper it is to “fill up” their vehicles with electrons rather than hydrocarbons.
Electric cars might well become more popular in an era of high gasoline prices. They might also become more expensive, depressing demand, keeping sales in check, and squeezing profit margins for the companies that manufacture them.
In this regard, Morgan Stanley is most confident that Tesla are “locking up” sufficient manufacturing capacity to ensure they will be able to hit their production targets.