EV stocks Tesla (TSLA) and Nio (NIO) are on track to close out a banner year with a bang. Tesla stock hit a new high and Nio stock rose as both received positive analyst ratings.
Taiwan-based Masterlink Securities initiated coverage on Tesla stock Thursday with a buy rating and a price target of 750.
Leaderboard stock Tesla is eyeing a 747% gain for 2020, which saw the electric-car company become the world’s top auto stock by market cap, post a record string of quarterly profits, and join the S&P 500 index.
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Meanwhile, Q4 delivery data are expected to come out next week. The automaker needs to notch roughly 180,000 to achieve its stated goal of hitting a record 500,000 for the year.
Wedbush analyst Daniel Ives said in a recent note that 190,000-200,000 is “well within reach.” However, he also cautioned that there could be “some logistics speed bumps throughout Europe in the next few days.”
Tesla stock rose 2% to a fresh high of 709.03 on the stock market today, topping 700 for the first time. Shares are well extended from its buy zone after breaking out of a cup-with-handle base to a buy point of 466, according to MarketSmith chart analysis. While it could be a good idea to take some profit at this point for investors who jumped in when the stock broke out, the eight-week hold rule is in effect through the first week of January.
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Bank of America analysts raised their price target on Nio stock to 59 from 54.7 in a recent note to clients.
Analyst Ming Hsun says Nio “will be able to gain market share rapidly in the next three years owing to its unique battery swap technology and also advanced autonomous driving development.”
Nio is slated to host a Battery Day event on Jan. 9. Hsun expects the automaker to announce a new electric sedan equipped to support autonomous driving, for delivery in Q4 2021. Nio is also expected to unveil a 150 kWh battery pack.
Nio stock rose 1.2% to 49.26 Thursday, heading for a full-year gain of 1100%. Shares cleared a 40.74 buy point off support at the 10-week line in mid-December. Nio stock is still within 10% of the 10-week line, so investors could still buy it now.
BofA also raised its price target on Xpeng (XPEV) to 51.10 from 43 while maintaining a buy rating. Analysts cited its free charging program as well as a new sedan and SUV expected soon.
Xpeng stock climbed 4.6%, and Chinese peer Li Auto (LI) added 2%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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