CNBC Pro

Missed out on Tesla? Morgan Stanley picks 3 electric car stocks that could bring double-digit returns

Share
Key Points
  • Morgan Stanley predicts double-digit gains for China's electric car stocks given strong growth as the industry moves rapidly toward tech upgrades.
  • "The NEV (new energy vehicles) market is attaching greater importance to tech software and hardware features in 2021," Morgan Stanley said in a report dated Jan. 28
Beijing auto show in 2020
Evelyn Cheng | CNBC

Watch out, Tesla.

Morgan Stanley is expecting double-digit gains for China's electric car stocks given strong predicted growth as the industry moves rapidly toward tech upgrades.

"China's EV (electric vehicle) competition will be more of a tech battle in 2021," the analysts said.

For the market of new energy passenger cars the analysts raised their forecast by about 200,000 vehicles to 1.7 million in sales in China this year, about 41% growth from a year ago. NEVs, or new energy vehicles, include plug-in hybrids and electric vehicles.

"The NEV market is attaching greater importance to tech software and hardware features in 2021," Morgan Stanley said in a report dated Jan. 28.

More In Pro News and Analysis

CNBC ProSantoli's Friday market notes: The inflation mini-panic subsides amid a broad rally for stocks
CNBC ProAs growth stocks struggle, Wall Street analysts say bet on these value names
CNBC ProCramer says investors are misguided on Disney, expects theme parks and movies will bounce