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Electric vehicle company Nio jumps 19% to new high on UBS upgrade citing fundamentals

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Tesla rival Nio's U.S.-traded shares jumped 19.31% on Tuesday to a new all-time high after UBS upgraded the stock and dramatically raised the price target based on improving fundamentals.

"Our previous urgent concerns around balance sheet have been assuaged by successful capital raising in June, with strong global market appetite for the EV story and a recovery in China meaning limited dilution," analysts led by Paul Gong wrote in a note to clients Tuesday.

The firm upgraded Nio to neutral from sell, but stopped short of placing a buy recommendation on the stock, citing the company's potential need to raise additional capital, among other things.

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