Electric Car Maker Nio Was In A Slump In March. Its Stock Is Up 1,000% Since Then

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Just seven months ago, Shanghai-based electric vehicle maker Nio (NIO) was seen as a cautionary tale. Its stock had cratered to less than $3 a share in New York trading, investors were calling the company a flop that put them off other startups, and it was bleeding cash.Since March, the stock has soared by more than 1,000% to $26.50. It gained more than 22% on Wednesday alone. And Wall Street analysts are again advising investors to buy into the company. So why the dramatic turnaround? Analysts at Citi, who nearly doubled their target price for the stock on Wednesday to $33.20, said that new factors had emerged to support their belief in the automaker’s growth, including “a very strong order backlog” racked up during China’s Golden Week holiday, recent market share gains, and its efforts to cut battery costs.Tesla looks to raise $5 billion by selling more of its red-hot stockNio, which is backed by Chinese tech giants Tencent(TCEHY) and Baidu (BIDU), is often hyped as one of the fiercest homegrown competitors to Tesla (TSLA).

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