NIO (NIO) - Get Report revealed that "Gemini" is the code name for a new high-end electric vehicle lineup to be launched next year, burying speculation that the China-based EV maker was looking to release a less-expensive mass-entry-level electric car.
NIO supplier JAC Group last month invited bids for construction of a NIO production line codenamed “Gemini” that would produce 60,000 units a year, sparking speculation that it would be a new entry-level NIO model.
NIO-watchers got it half right. A NIO spokesperson confirmed on Monday that the “Gemini” project will involve building NIO-branded luxury cars that will compete with the likes of Tesla (TSLA) - Get Report, Audi, BMW (BMW) and others - not lower-priced models.
NIO shares jumped on Friday after the Chinese electric-vehicle maker reported a more than 95% year-over-year increase in deliveries for May. The company delivered 6,711 vehicles in the month and 109,514 vehicles year to date.
Citigroup analyst Jeff Chung upgraded the stock to buy from neutral while raising his price target to $58.30 from $57.60. The investment firm also raised its 2021 China new energy vehicle sales forecast to 2.52 million units from 1.79 million units.
Meantime, NIO is ramping up to sell more cars outside China. The Shanghai-based, U.S.-listed carmaker last month announced plans to set up and sell its electric vehicles in Norway starting in September.
The carmaker said it chose Norway as its first non-China destination due to the country’s aggressive adaption of electric vehicles.
NIO’s American depositary receipts at last check were up .14% at $42. They are still down more than 21% year to date.