Stock markets have found their rhythm after the recent interest rate cut decision by the Federal Reserve, and this provides a good foundation to assess stocks. Nio, Tesla and Lloyds shares are three stocks with vastly different standings in terms of their performances this year. While Lloyds Bank share price has been among the best performers at the London Stock Exchange with YTD returns of 23 percent, Tesla stock price has been struggling for vast periods.
In fact, TSLA stock holders who bought the stock in January only started being in profit last week. TSLA share price has generated 3 percent in profit as of this writing. Meanwhile, Nio stock price had been on a downtrend for vast periods, and only returned to the upside in September as its key fundamentals changed substantially. We look at the three stocks’ performances and their near-term performance outlook below:
Tesla share price has entered a potentially definitive phase in its trajectory as the Robotaxi unveiling date is only ten days away. While Tesla (NASDAQ: TSLA) sales figures have been far from impressive this year, the robotaxi sentiment has not only provided propulsion, but also prevented a deeper decline.
Unlike the previous date that was initially pushed back, the unveiling date seems to be on course. Tesla teased the launch date on social media platform, X on September 26, generating significant excitement.
A screengrab of the Robotaxi unveil teaser by Tesla on X
But before the Robotaxi event, Tesla stock has propulsion from its Full Self Drive upgrade for its cybertruck models. In addition, the Tesla AI team’s social media postings thereafter suggested that the FSD upgrade could come to the semi-truck too. These recent developments, plus the robotaxi unveiling are setting up a potential upbeat momentum around TSLA that could help offset potential weak Q3 sales numbers this week.
Tesla share price will likely face near-term resistance at $120.46. In that case, the first support will likely be at $119.33. However, extended control by the sellers could lead to further declines to test $118.00.
On the other hand, a move above $120.46 will favour the buyers, with initial resistance likely to come at $121.25. A stronger upward momentum could break above that barrier to invalidate the downside narrative and test $122.50.
Nio stock price spiked on Monday on news of a $470 million strategic investment by a China-based Nio Holding Company Ltd which has controlling stake in the EV maker. The deal, which could potentially grow to $4.8 billion, will involve the purchase of newly-issued shares .
Nio share price popped by 12.8 percent on Friday, and was up by 5.3 percent as of this writing, raising the lid on the potential upside. Nio (NYSE: NIO) has risen by 65 percent in September, the biggest monthly gain since November 2020. As Nio’s Onvo L60 SUV deliveries start this week, Nio could experience a spike in its sales figures.
The Onvo L60 model is seen as Nio’s answer to Tesla’s Model Y, and production is expected to reach 5,000 units in October and 10,000 by December. That figure is forecast to reach between 16,000-20,000 per month by March 2025. Nio has promised its customers placing orders now that they will receive their vehicles this year.
Nio share price will likely continue with the upside if the action stays above $6.75. That will likely push the stock to the first barrier at $7.26. However, if the bulls extend their control, it could extend gains to break above that hurdle and test $8.00.
Conversely, a move below $6.75 will favour the sellers to take control, with initial support likely to come at $6.25. However, a stronger bearish momentum could break below that mark to invalidate the upside narrative and test $5.70.
Lloyds Banking Group (LSE: LLOY) share price has risen by 22 percent in 2024 and is among the best performers in the FTSE 100 Index. The downside to Lloyds share price is a potential multimillion fine by the Financial Conduct Authority (FCA) against the bank when it completes its investigation into the car finance scandal. Lloyds is the UK’s biggest car loan issuer and has set aside £450 million to cover the potential costs associated with the scandal. However, the fine could be more.
On the positive side, the banks broad customer base gives it an upper hand against smaller competitors. As the UK ushers in a low interest rate regime, Lloyd’s upside could improve as more customers seek loans. Also, it has a substantial cash reserve that could cushion it against potential economic shocks as the UK’s economy struggles to maintain growth.
Lloyds share price pivots at GBX 58.70, and the downside will likely continue if resistance persists at that level. In that case, the first support could come at GBX 58.32, but a stronger downward momentum could break below that mark to test GBX 58.00.
Alternatively, a move above the pivot mark will signal bullish control, with the first resistance likely to come at GBX 59.26. Further bullishness could break above that level, invalidate the downside narrative and potentially test GBX 59.70.
This post was last modified on Sep 30, 2024, 17:51 BST 17:51