Why Tesla Shares Rose Today, but Nio and Lucid Dropped

Tesla 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 and U.S.-based start-up Lucid Group 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. Rakesh maintained his buy ratings on both Tesla and Nio, as even the reduced price targets reflect plenty of upside. 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. 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. Lucid does have plans for future models that will carry lower prices, but investors seem to be focused on the nearer term now.