Diamonds and Dogs
NIO skyrockets on strong deliveries. The Chinese Tesla is up 56% following earnings. The company reported a loss, but sales beat expectations while the company also gave an upbeat outlook for the current quarter. Vehicle deliveries totaled 4,799 vehicles, including 4,196 ES6s and 603 ES8s, representing a 35.1% increase from last quarter. The ES6 is the 5-seater high-performance sport-utility vehicle (SUV), which began deliveries in June, and the ES8 is Nio's flagship SUV, which began deliveries a year earlier. Even with today's rally, NIO's stock is still down 50% from the March highs.
Profit-taking in Tesla (TSLA). Tesla is down 3% after an analyst raised his price target to $210 a share (50% below current levels) but then made caution comments on deliveries for the full year. The analyst also expects increase competition and slowing sales next year as the market matures for electric cars and reduced government incentives that have been a big driver of sales on 2019. Even with today's sell off, Tesla' s stock is still up over 80% from the summer lows.