Tesla Stock: Tesla Inc. ‘s shares charged higher to another record Monday, after the results of blowout deliveries by the electric vehicle maker even the most bearish Wall Street analyst lifted its price target.
In the wake of the upbeat June sales report by the China-based EV maker, Tesla rival Nio Inc. ‘s stock NIO, 18.18 per cent also soared to a record. Meanwhile, Workhorse Group Inc ‘s shares include other EV creators. WKHS, -14.35 per cent pulled back after an 11-day winning streak and Nikola Corp record. NKLA was heading for a fourth consecutive defeat, -14.19 per cent.
Tesla’s TSLA stock, 8.68 per cent in afternoon trading shot up 10.0 per cent, putting it on track for a fifth straight rise. Over the previous four days, the stock had soared by 25.9 per cent, the last three of which produced record closing prices.
Tesla Stock: JPMorgan’s analyst Ryan Brinkman boosted his stock price target to $295 by 7.3 per cent, but it was still 78 per cent below current prices. Brinkman ‘s goal remained the lowest out of FactSet’s 32 analysts surveyed.
The price increase goal follows from Tesla ‘s announcement Thursday that it delivered 90,650 vehicles in the second quarter, well above 72,000 estimates.
Brinkman said the delivery data led Chief Executive Elon Musk to suggest that Tesla’s second-quarter report might generate a surprise break-even result due on or about July 22. But he warned investors that any “substantially better outcomes” may include products that are “one-time or rather special in nature,” such as zero-emission regulatory credit sales or the release of accrued revenue associated with autonomous driving apps.
Tesla Stock: Brinkman reiterated his underweight ranking for at least the last three years on Tesla, citing “lofty valuation” combined with “high aspirations of investors and high risk of execution.”
“Our underweight rating recognizes significant positive developments, including a highly differentiated business model, competitive product portfolio and state-of-the-art technology, which we believe are more than balanced by the above-average execution risk and valuation that appears to be pricing in large numbers,” Brinkman wrote in a note to customers.
Of the 32 analysts surveyed by FactSet, 12 have sell ratings equivalent on Tesla, while 11 have hold equivalent and 9 have buy equivalent. The target average price is $774.98, or 42 percent below current prices.
Nio ‘s stock shot up 23 per cent in midday trading to a fifth straight rise. That put it on track to close just shy of its $11.60 record close, reached on Sept. 13, 2018, Nio ‘s second day as a U.S. public company.
The stock rallied 35.9 per cent over Thursday over the previous four sessions.
Tesla Stock: Last week, Nio announced a 179 per cent rise in June sales from a year ago to 3,740 EVs. That consisted of 2,476 ES6 model EVs and 1,264 ES8 EVs, which are Nio ‘s small SUVs. That took sales to 10,331 vehicles in the second quarter , up 191 per cent from a year ago.
Separately, DigiTimes announced on Monday that in the first half of 2020, Nio raised funds totalling $1.97 billion and acquired a factory in central China as it aims to increase its production capacity to 4,500 to 5,000 EVs per month from the current 4,000 mark.
Not all EV makers enjoyed Monday’s gains, as Workhorse’s stock dropped by 10.5 percent, putting the stock at risk of suffering its first decline in 12 sessions. During its record 11-day win streak through Thursday, which was supported by last week’s announcement of a $70 million securities purchase agreement from an institutional investor, the stock had rocked more than five times (up 406 per cent).
Tesla Stock: Nikola ‘s portfolio plunged Monday at 12.0 per cent. It has lost 26 percent in a four-day losing streak, and since the record close of $79.73 on June 9, it has tumbled 37 per cent.
JPMorgan ‘s Paul Coster had introduced a favorable rating late last month to cover the battery-electric and hydrogen-electric vehicle supplier, saying the firm was prepared to disrupt the transport industry.
Despite the pullbacks, Workhorse ‘s stock was still more than six times higher (up 515 percent) year to date and Nikola ‘s shares were almost five times higher than 388 percent). Tesla ‘s stock has more than tripled this year (up 218%) and Nio ‘s stock has almost tripled (up 186%), while the S&P 500 SPX index has fallen 1.20%.
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