As gas prices rise to a national average of $3.61, according to AAA.com, Tesla and other electric vehicle manufacturers’ stocks also soared. Tesla was up 7.9% on Feb. 28, 2022, reaching a high of $885.67 for the day. Tesla shares dipped slightly at market close, losing just 0.70% on the day, as some investors cashed in on their gains. Rivian also gained 7.2%, while Nio gained 10%.

                By                    Dawn Allcot

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As the Russian invasion of Ukraine affected U.S. oil supplies, investors seem to be acting on the idea that U.S. and European governments will take measures to accelerate EV incentives and adoption to reduce reliance on foreign oil. On Feb. 28, the eve of the State of the Union address, the White House released a statement detailing President Joe Biden’s clean energy initiatives and investments.

In the first two months of 2022, the release stated, the Biden administration set goals to achieve 50% electric vehicle sales share by 2030 and to create an official target to achieve net-zero greenhouse gas emissions by 2050, with the hope of reducing greenhouse gas pollution by more than 50% by 2030.

However, the U.S. government’s eye being cast toward a greener future wasn’t the only thing driving Tesla stock earlier this week. Tesla’s battery partner, Panasonic, announced that it will produce new 4680 rechargeable lithium ion batteries in Japan beginning less than a year from now. The 4680 batteries, touted by Tesla as the key to reducing range anxiety — the fear that a vehicle’s battery will die without access to a charging station — were first revealed at Tesla’s Battery Day in 2020. The 4680 model is about five times bigger than Tesla’s current battery, offering greater range with a lower production cost.

The announcement of a forthcoming production facility in Japan is the first step toward seeing the batteries on assembly lines and, ultimately, in Tesla vehicles. The company said it could start producing batteries as early as March 2023.

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For those holding Tesla stock, analysts report it could continue to climb, especially with sanctions targeting Russia continuing to have a bullish effect on the EV market, overall, per FX Empire. The FX Empire report noted that Tesla is currently down 30% from Nov. 2021 highs, which has some analysts calling it a “buy” at this point in time.