By Klavs Valters
 @klavsvalters

2020 was a good year for electric car space. We have seen shares of most electric car makers surge considerably and take steps to take the industry to the next level, most notably Tesla and NIO.

Top 5 automakers by market cap*

1. Tesla at $790.53 billion
2. Toyota at $209.83 billion
3. NIO at $97.21 billion
4. BYD at $94.21 billion
5. Volkswagen at $92.80 billion

*As of 13/1/21

Source: Companies Market Cap

Tesla

The share price of the World’s largest electric car maker (by market cap) Tesla rose above $700 at the end of last year, and it has continued to climb up to above $800 per share. The recent price surge made Elon Musk the richest person in the World at $202 billion, passing Amazon owner Jeff Bezos.

Goldman Sachs recently raised their price target for the stock from $455 to $780, keeping its rating at ”neutral” despite the price target upgrade. ”We believe that the shift toward battery electric vehicle adoption is accelerating and will occur faster than our prior view” they added.

On the other hand, JPMorgan sees the share price plummeting by 87% to 90% a share in 2021. Tesla stock is “in our view and by virtually every conventional metric not only overvalued but dramatically so,” a team of JPMorgan analysts led by Ryan Brinkman said last month.

The share price is currently trading at around the $854 level, up by 16% since the beginning of the year. Tesla are set to report earnings on 2/2/21.

NIO

Tesla was not the only electric car maker making headlines in 2020. NIO, the Chinese electric car manufacturer also made moves in the electric vehicle (EV) space. The share price of the ”Chinese Tesla” rose by around 1,110% last year, making it one of the best performing large-cap stocks of the year.

There are a few reasons why the stock has risen recently. The company recently announced its first luxury sedan – ET7. The new model will start at $69,000 and have will an estimated driving range of 620 miles on a full charge, according to the company. NIO also announced that it is teaming up with Nvidia and Qualcomm.

Following the latest news, JPMorgan announced that they have increased their price target for the ”Chinese Tesla” from $40 to $75 per share.

The share price is currently trading at around the $62 level, up by 16% since the beginning of the year. Tesla are set to report earnings on 9/3/21.

The electric vehicle industry is expected to grow in the coming years with many countries around the World announcing bans on selling new petrol and diesel cars in the next decade.

You can trade Tesla (TSLA) and NIO (NIO) and many other stocks from the ASX, NYSE, and the NASDAQ with GO Markets as a Share CFD. Click here for more information. Capital at risk.

By Klavs Valters
 @klavsvalters

Disclaimer: The articles are from GO Markets analysts, based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own; should not be taken as either representative of or shared by GO Markets. Advice (if any), are of a ‘general’ nature and not based on your personal objectives, financial situation or needs. You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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