NIO Stock Price and Forecast: NIO shares rise as Tesla rebounds on analyst recommendation

• NIO shares rise over 3% on Monday during the pre-market session.
• Tesla (TSLA) rises as Piper Sandler ups Tesla price target.
• NIO remains strong, boosted by retail sentiment.

Update on Monday, February 1: NIO shares are trading higher in Monday's pre-market trading as NIO continues to benefit from retail interest in the stock. NIO is also benefiting from read across from Tesla (TSLA). Shares in Tesla are up nearly 4% in pre-market trading on Monday as Piper Sandler has increased its price target for Tesla (TSLA) to $1,200.

Update: NIO shares were higher in pre-market trading on Friday as Morgan Stanley raised its price target for NIO to $80. The previous price target was $33. Morgan Stanley reiterated its overweight rating on NIO. NIO was trading $59.47 at the time of writing up 2%.

Update: NIO shares continued to rebound on Thursday and early Friday as the disappointing earnings result from Tesla (TSLA) had hit NIO shares on Wednesday. NIO shares were also boosted from the news by Robinhood to partly backtrack on the decision to restrict trading in certain names. NIO was not one of those names but NIO does have strong retail interest. 

See also: Gamestop (GME) Stock Price and Forecast: GME What is happening now? 

NIO Stock News Update: Shares in NIO continued to suffer on Thursday as Tesla’s weakness (TSLA) continued. Technically NIO is testing support at $55.28 a gap from the January 6 high.

NYSE:NIO has generally moved in unison with Tesla (NASDAQ:TSLA), so it should come as no surprise that on a day where Tesla missed its earnings estimates, both stocks would fall. NIO dropped 5.24% on Wednesday as shares fell to $57.15, alongside a broader market selloff, with the S&P 500 having its worst trading day in three months. The loss paled in comparison to Tesla, which fell 2.14% during the day and another 5% after hours following the earnings call. 

Tesla reported its first disappointing call in over a year, as profits and margins fell on account of lower price tags on its Chinese sales. The earnings per share came in at a paltry $0.80 per share, compared to analyst estimates of $1.03, and are especially disappointing compared to its $2.14 per share last year. While the earnings are certainly not what investors expected, it is always important to note that given how high the electric vehicle company has climbed, all it took was one catalyst to release some of the air from the balloon. 

NIO Stock News

A new analyst from Nomura has initiated coverage of NIO and he is certainly bullish on the Chinese automaker. Citing several factors including the BaaS technology, the analyst raised his price target to over $80 per share for this year. This is quite a bullish stance, but given the recent publicity and technology advancements displayed at the NIO Day event, he could very well be in the right range. The median analyst price target for NIO’s stock is currently $59. 

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