The Chinese electric vehicle manufacturer NIO experiences a significant stock price increase following an upgrade by the investment bank Macquarie.

Macquarie upgraded NIO stock from "Neutral" to "Outperform," based on improved earnings forecasts for the upcoming quarter. The new price target was raised from 52 to 65 Hong Kong dollars, representing a potential increase of over 40 percent. Analysts expect strong earnings for the third quarter and continue to forecast positive results for the fourth quarter due to rising sales figures.

In the third quarter of 2024, NIO achieved a delivery record with 61,855 vehicles sold, highlighting the demand for the company's products. Another increase in sales is expected for the fourth quarter, particularly due to the launch of the new mass-market model ONVO L60. Additionally, Macquarie views the potential launch of the new Firefly brand early next year as another growth driver.

The positive response from investors reflects confidence in NIO's long-term strategies. Despite the intense competition in the electric vehicle market, NIO appears robust and well-positioned to benefit from increasing market shares and the expansion of its product portfolio. The strong performance in the third quarter and the promising prospects for the upcoming months have heightened investor interest and contributed to the gains in stock prices.