Momentum has been building in Nio 's (NYSE: NIO) electric vehicle (EV) business, but the stock itself has been facing headwinds that have held it back. Some of those headwinds may be abating, and investors are pushing Nio shares up Monday as a result. After popping 9% to start the trading week, Nio American depositary shares were still 8.2% higher as of 11:05 a.m. ET.
There are reports that Chinese regulators intend to make it possible for U.S. regulators to audit Chinese companies, which could prevent Chinese shares from being delisted from U.S. exchanges. With that news, investors seem to be getting past that overhang in many U.S.-listed Chinese names, including Nio. Those reports, along with underlying company progress, prompted UBS analyst Paul Gong to upgrade the Chinese EV maker to a buy recommendation today. Investors are taking notice and juicing the stocks gain today.
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Here's Why Nio Shares Jumped Monday