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Citi upgrades Nio, says growing EV demand in China can lift stock more than 50%

The NIO Inc. ES6 electric sport utility vehicle (SUV) stands on display at the Auto Shanghai 2019 show in Shanghai, China.
Qilai Shen/Bloomberg/ Getty Images

Chinese electric vehicle maker Nio should see sales growth accelerate in the near and long term, giving its stock upside of more than 50%, according to Citi.

Nio's shares have struggled in 2021, along with other stocks tied to EVs. The company's U.S.-traded shares have slipped more than 20% year to date.

Citi analyst Jeff Chung upgraded the stock to buy from neutral, saying in a note to clients on Tuesday that the company should see demand gain steam in the coming months, making that weakness in trading a buying opportunity.

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