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esla (TSLA) and Nikola (NKLA) were up Tuesday while Chinese electric car stocks gave up gains lower as the Trump administration finally started the transition process.
lectric car stocks got an early boost after General Motors (GM) said Monday it would suspend litigation backed by the Trump administration against California.
The state had pushed to be allowed to set its own emission regulations, and the Biden administration is expected to drop the suit.
Shares climbed 6.4% to close at 555.38 on the stock market today. Tesla stock is now extended just beyond buy range after breaking out of a cup base with a 527.71 entry point. It is also extended from a handle buy point of 466. Tesla is an IBD Leaderboard stock. and is the top-ranked stock in IBD’s Auto Manufacturers Group.
And he hinted again that the electric car company could produce a hatchback out of its German operations. He had first mentioned the possible new car over the summer.
But the EV truck company is facing scrutiny over fraud allegations. While GM announced its new investment in electric cars last week, it didn’t mention Nikola. Both companies are in talks over a manufacturing partnership on the Badger electric pickup.
Chinese Electric Car Stocks
While U.S. electric car stocks rose, Chinese EVs were a mixed bag after surging in premarket trading Tuesday.
Nio (NIO) fell 3.4% to 53.50. Nio stock cleared a 25.98 second-stage, flat-base buy point Oct. 9, according to MarketSmith chart analysis. Shares are still extended beyond buy range. The stock has a top Composite Rating of 99.