Why Tesla Shares Rose Today, but Nio and Lucid Dropped

Investors look to be trading three electric vehicle (EV) company stocks Monday based on some comments made by business analysts over the weekend and Monday morning. Tesla (NASDAQ: TSLA) stock jumped by as much as 2.6%, and was still up 0.3% as of noon ET. On the other hand, stocks of Chinese EV maker Nio (NYSE: NIO) and U.S.-based start-up Lucid Group (NASDAQ: LCID) were down 3% and 4.7%, respectively, at that time. On Monday morning, Mizuho analyst Vijay Rakesh cut his stock price targets on both Tesla and Nio. As Marketwatch reported, Rakesh cited some known recent issues for the EV makers, including the COVID-related shutdowns in China's manufacturing hub of Shanghai, which exacerbated ongoing global supply chain issues. The Chinese government is relaxing those shutdowns, but analysts' vehicle delivery estimates are coming down due to the production delays they created.Rakesh maintained his buy ratings on both Tesla and Nio, as even the reduced price targets reflect plenty of upside. He moved Tesla's 12-month stock price estimate down to $1,150 from $1,300, and Nio's from $55 to $48 per share. If the companies hit those new targets, that still would amount to a gain of about 55% for Tesla and a more than 100% increase for Nio. But the underlying reasons for the price target cuts could be spooking Nio investors more. Tesla has other areas where it could make up for any Shanghai-related headwinds, while Nio is fully reliant on its China facility. Continue reading
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