Citi downgrades Nio, saying red hot China EV play may have trouble challenging Tesla

Employees make checks at an inspection line during a media tour of the Nio Inc. production facility in Hefei, Anhui province, China, on Friday, Dec. 4, 2020.
Qilai Shen | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Shanghai-based Nio may not pose the threat to Tesla that many are expecting, according to Citi. The firm cut the red-hot electric vehicle stock to a neutral rating, saying Nio's new sedan is "good but not enough to make any critical changes from Tesla's challenge."

More In Street Calls

CNBC ProHere are Bank of America's top stock picks for 2021
CNBC ProHere are Friday's biggest analyst calls of the day: Disney, Walmart, Microsoft, Ford & more
CNBC ProThese are Morgan Stanley’s favorite buys and sells as earnings season ramps up