Why Ford, Tesla, and Nio Stocks Fell Today

These car stocks are getting cheaper -- and one of them might already be cheap enough to buy.

What happened On an only modestly red day for the stock market, with major indices all down just a fraction of a percent each, shares of automotive stocks are getting hurt more than most. Tic-tac-toe, three in a row, shares of Ford Motor Company (F -1.62%), Tesla (TSLA -4.47%), and Nio (NIO -6.70%) are down 2%, 1.9%, and 5.9%, respectively.

In the case of electric vehicle (EV) specialists Tesla and Nio, it's basically Wall Street to blame for today's declines. Granted, yesterday's announcement that Elon Musk has apparently decided he will buy Twitter after all is probably still having an effect on Tesla stock -- but there's new news, too.

Specifically, this morning, Japan's Mizuho bank lowered its price target on Tesla stock, citing "logistics challenges" that prevented the company from hitting its targeted delivery number for the last quarter. Although Tesla did still grow its deliveries 42% year over year, and grew its production numbers 54%, the miss necessitates a price target cut to $370 per share, says Mizuho today in a note covered by StreetInsider.

Now, what about Ford -- which, for all its electric ambitions, still remains today primarily a maker of SUVs and trucks powered by the venerable internal combustion engine? Well, earlier this week, as you probably heard, Ford reported a 9% decline in sales for September -- and an 18% decline in trucks. The company blames parts shortages for sidelining as many as 45,000 vehicles that remain only half-built because they don't have the parts needed to complete them.

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NIO Inc NIO shares are trading lower Thursday after Mizuho slightly cut its price target on the stock in the wake of the company's most recent delivery numbers.  Mizuho analyst Vijay Rakesh maintained Nio with a Buy rating and lowered the price target from $42 to $40, citing a shortfall in deliveries.

Rakesh highlighted Nio's 31,607 total deliveries in the second quarter, which was below estimates of approximately 33,100. However, he applauded the company for turning in a 29% increase year-over-year despite continued production headwinds from supply chain shortages and production line upgrades.