By Dhirendra Tripathi

Investing — Nio (NYSE:NIO) shares were up 4% in Tuesday’s premarket following a near doubling of sales in May that also led the Chinese maker of electric vehicles to say it will be able to accelerate its June deliveries.

The positive commentary from the Tesla (NASDAQ:TSLA) rival prompted Citi to upgrade the stock to ‘buy’ from ‘neutral’ with a target of $58.30, a 51% rise from its Friday close.

Nio sold 6,711 vehicles in May, up 95% compared to a year ago.

The company said it vehicle delivery was adversely impacted for several days in May due to the volatility of semiconductor supply and certain logistical adjustments.

But it said “based on the current production and delivery plan, the company will be able to accelerate the delivery in June to make up for the delays from May.”

Nio also maintained and reiterated the delivery guidance of 21,000 to 22,000 vehicles for the second quarter of 2021.

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