Keep an eye on Nio Inc. (NIO).

The electric vehicle (EV) stock continues to explode higher.  In pre-market today, it’s up another $2.  And $40 isn’t out of the question.

According to Pulse 2.0:

“JPMorgan upgraded its rating for NIO last month from Neutral to Overweight with a $40 price target. JPMorgan analyst Nick Lai had nearly tripled his price target from $14 to $40. Lai noted that production costs for electric vehicles will likely reach parity with internal-combustion-engine vehicles by 2022-2023 as the battery costs continue to fall.”

Citigroup analyst Jeff Chung also recently upgraded NIO to the equivalent of a buy rating, according to Barron’s, form a hold.  He also increased his price target to $33.20 from $18.20.  JP Morgan analyst Nick Lai, who believes electric vehicle penetration could quadruple over the next five years, called Nio a “long term winner in the premium space.”

Record deliveries are sending the stock higher, too.

In September 2020, the company said it delivered 4,708 vehicles – a growth rate of just over 133% year over year.  It sold 3,210 ES6, 1,482 ES8, and 16 EC6 model vehicles.  NIO delivered 12,206 vehicles in the third quarter of 2020, representing an increase of 154.3% year-over-year and exceeding the higher end of the Company’s quarterly guidance.