US-listed shares of Chinese electric vehicle maker Nio climbed more than 9% on Tuesday to $7.08, their highest level since October 2 last year, as optimism built ahead of new model launches and a fresh Wall Street upgrade.
The rally followed a note from UBS, which upgraded the stock to Buy from Neutral and raised its price target for the second time in two weeks.
Based on Monday’s closing price of $6.49, the new target implies an upside potential of nearly 31%.
With Tuesday’s rally, Nio shares have crossed the 100% jump over the last three months.
UBS analyst Paul Gong said Nio’s “latest products could further attract consumers after the US$1bn equity offerings strengthened visibility on its healthy operations.”
The firm added it “foresees some sustained sales momentum over the next few months.”
The move higher erased losses from last week, when shares fell as much as 10% to $5.72 after the EV maker unveiled plans to raise $1 billion through equity offerings.
The stock began rebounding on Monday, wiping out the decline.
Goldman Sachs previously said the fundraising would help reduce Nio’s debt ratio to 92%, though it also stirred investor concerns about dilution. The company priced the offering at $5.57 per U.S. depositary share earlier this month.
Nio’s management guided at its September 2 earnings call that September deliveries are on track to set a new monthly record, after August’s all-time high of more than 31,300 vehicles.
Executives have pledged a sales push in the final months of the year, with 150,000 EVs delivered in Q4 across the three brands of the group.
The surge comes just days before the company’s annual Nio Day on September 20, when it will officially launch its new three-row ES8 SUV.
Hundreds of units have already been shipped to showrooms across China, with first deliveries scheduled for September 21, echoing the rapid rollout of the Onvo L90 earlier this year.
Nio’s brands have shown mixed sales trends in recent weeks. The core brand hit a five-week low ahead of the ES8 launch, while Firefly edged higher to 1,125 units and Onvo logged a third consecutive decline to 2,620 units.
Beyond product launches, Nio has also been navigating heightened scrutiny in China’s competitive EV market.
Founder and CEO William Li said in a recent CCTV appearance that crackdowns on organized “black PR” campaigns targeting carmakers were “not strong enough.”
One executive also said the company was monitoring rival Li Auto for fueling online attacks against the ES8.
Internationally, Nio is seeking to expand its footprint. In the Middle East, the company’s UAE joint venture said it aims to become one of three best selling brands in the UAE’s premium EV market within two to three years.
