NIO (NIO) - Get NIO Inc. Sponsored ADR Class A Report shares rose Monday after Louis Navellier, chief investment officer of money manager Navellier, said the Chinese electric-car maker will surpass Tesla (TSLA) - Get Tesla Inc Report in China.
“Another electric vehicle company will eventually displace Tesla as the biggest manufacturer of EVs in China,” he wrote in a commentary.
“I’m talking about NIO. The reality is that this company is on the verge of dominating the EV market in China and Hong Kong.”
NIO American depositary receipts recently traded at $49.23, up 9.2%. They have climbed 27% in the past month amid investor enthusiasm for EVs.
Tesla recently traded at $687.47, up 2.3%, and has gained 9% in the past month.
As for NIO, “the company boasts that it is the ‘next-generation car company,’ as it designs and manufactures electric vehicles that utilize the latest technologies in connectivity, autonomous driving and artificial intelligence,” Navellier said.
Earlier this month, NIO said that "Gemini" was the code name for a new high-end electric-vehicle lineup to be launched next year. The move buried speculation that the Shanghai EV maker was looking to release a less-expensive mass-entry-level electric car.
NIO supplier JAC Group last month invited bids to build a NIO production line code-named “Gemini” that would produce 60,000 units a year. That sparked speculation that it would be a new entry-level NIO model.
Also in June, NIO reported a more than 95% year-over-year increase in deliveries for May. Citi analyst Jeff Chung upgraded the stock to buy from neutral while raising his price target to $58.30 from $57.60.