Tesla shares soar to record as Wall Street’s biggest bear raises target price

TSLA Tesla stock,
+ 9.54%
it shot up 10.8% in the midday trade, setting it on the road for a fifth consecutive gain. The stock has shot up 25.9% in the past four days, the last three of which produced record closing prices.

JPMorgan analyst Ryan Brinkman raised his stock price target by 7.3% to $ 295, but was still 78% below current prices. Brinkman’s target remained the lowest of 32 analysts surveyed by FactSet.

The target price increase follows Tesla’s report on Thursday that it delivered 90,650 vehicles in the second quarter, well above expectations of 72,000.

Do not miss: Tesla shares soar as quarterly sales flatten expectations.

See related: Some workers complain that Tesla has threatened to fire them if they don’t return to work.

Brinkman said the delivery data led chief executive Elon Musk to imply that Tesla’s second-quarter report, to be released on or around July 22, could produce a surprising balancing result. However, he cautioned investors that any “substantially better result” could include elements that are “one-time or something like that,” such as zero-emission regulatory credit sales or the release of deferred revenue associated with autonomous driving characteristics. .

Brinkman reiterated Tesla’s underweight rating for at least the past three years, citing a “valuable valuation” coupled with “high investor expectations and high execution risk.”

“Our underweight rating considers notable positive investment features, including a highly differentiated business model, an attractive product portfolio and state-of-the-art technology, which we believe is more than offset by above-average execution risk and valuation They seem to be very expensive, Brinkman wrote in a note to customers.

Of the 32 analysts surveyed by FactSet, 12 have the equivalent of Tesla’s sales ratings, while 11 have the retention equivalent and 9 have the purchase equivalent. The average price target is $ 774.98, or 42% below current prices.

Nio’s shares rose 25% to a fifth straight gain in the midday trade. That set him on track to close above his previous record close of $ 11.60, which was reached on September 13, 2018, Nio’s second day as a public company in the U.S.

The stock was up 35.9% during the previous four sessions through Thursday.

Nio reported last week that June sales increased 179% from a year earlier to 3,740 electric vehicles. That consisted of 2,476 Model ES6 EVs, which are Nio’s small SUVs, and 1,264 EV ES8s. That brought second-quarter sales to 10,331 vehicles, 191% more than a year ago.

Separately, DigiTimes reported on Monday that Nio raised funds totaling $ 1.97 billion in the first half of 2020, and has acquired a factory in central China as it seeks to expand its production capacity from 4,500 to 5,000 EV per month from the current rate of 4,000.

Not all EV makers enjoyed gains on Monday as Workhorse shares fell 9.7%, putting stocks in danger of suffering their first decline in 12 sessions. The stock had soared more than five times (up 406%) during its record 11-day winning streak through Thursday, which was backed by last week’s announcement of a $ 70 million stock purchase agreement by an institutional investor.

Nikola shares fell 8.0% on Monday. It has lost 22% amid a four-day losing streak ($ ​​67.57), and has fallen 34% since the record June 9 closing of $ 79.73.

JPMorgan’s Paul Coster had begun coverage of the hydrogen and battery electric vehicle maker late last month with a neutral rating, saying the company was poised to disrupt the transportation industry.

Despite the pullbacks, Workhorse shares still increased six-fold (up to 521%) to date and Nikola’s shares increased five-fold (410%). Tesla shares have more than tripled (up to 220%) this year and Nio shares have almost tripled (up to 191%), while the S&P 500 SPX index,
+ 1.36%
It has slipped 1.6%.