Shares of Tesla were up nearly 4% to $694.72, while NIO was climbing 5.83% to $43.72.
Mizuho’s Vijay Rakesh set a $775 share price target for Tesla, saying the company “is the global leader in the EV market with its vertically integrated manufacturing, advanced battery and ADAS (advanced driver assistance system) roadmaps, innovation, and an unsurpassed EV footprint.”
“With Tesla’s cutting-edge battery technology driving key leadership in the EV market and providing sustainable energy storage for residential & industrial applications, disrupting the global energy market, we see TSLA as a leader for the next decade and beyond,” the analyst said in a research note.
Rakesh said he believes “Tesla is at the forefront of what is arguably the greatest automotive transformation in the last 100 years as vehicle powertrains shift to electrification (EV) and autonomous and look to rely less on human navigation.”
Tesla also increased prices on four of its models.
Rakesh set a $60 share price target for NIO, saying the Chinese company “is a leader and innovator in the premium automotive EV segment.” The analyst also noted that NIO is domiciled in China, giving the company a “home court advantage” in the world’s largest electric vehicle market.
“NIO has a key differentiation from peers: a premium EV offering with a lower cost of ownership through its novel Battery-as-a-Service battery swap module,” Rakesh said. “With a small 0.1% share of overall global light vehicle production, we believe NIO has significant upside as it expands in China, into Europe in 2H21E, and potentially into other markets.”
While NIO is focused on the premium EV segment, the analyst said, “a China subsidy and an innovative BaaS program make NIO’s cars eminently affordable compared to competing brands such as Tesla.”
Earlier this month, NIO reported a wider-than-expected loss for the fourth quarter, even as revenue more than doubled for the period from a year earlier.
Last week, Reuters reported that NIO, Li Auto (LI) – Get Report and XPeng XPEV all planned on listing in Hong Kong as early as this year.
The companies, all of which are already publicly listed in the U.S., aim to sell at least 5% of enlarged share capital on the Hong Kong exchange. Proceeds for the listings could reach $5 billion.