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Electric car maker Nio was in a slump in March. Its stock is up 1,000% since then

October 15, 2020. Summarized by summa-bot.

NANJING, CHINA - JULY 24: A NIO??Inc. EP9 sports car is on display during the 13th China (Nanjing) International Auto Expo on July 24, 2020 in Nanjing, Jiangsu Province of China. (Photo by Fang Dongxu/VCG via Getty Images)

China's wannabe "Tesla killer" is on a wild ride.

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.

An injection of 7 billion yuan ($1 billion) in April by state-backed investors in the Chinese city of Hefei, where Nio recently set up a new headquarters, was critical in restoring investor confidence, said Tu Le, founder of Beijing-based consulting firm Sino Auto Insights.

Investor appetite for the electric vehicle sector has soared in recent months, partly led by enthusiasm for Tesla (TSLA) and confidence in China's recovery, Le noted.

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