Nio Inc Class A ADR rose 6.2% in morning trading Friday after Goldman Sachs upgraded the Chinese electric vehicle maker from neutral to buy and set a 12-month price target of $7.00 for the U.S.-listed ADRs.

Goldman Sachs analyst Tina Hou said Nio is positioned to deliver one of the fastest volume growth rates among the bank's coverage universe, alongside a premium margin profile and a strong profit and free cash flow turnaround through the remainder of 2026.

The stock traded Thursday at its 52-week low of $3.36. Goldman Sachs said the valuation gap is misaligned with the company's strengthening fundamentals, pointing to Nio's third quarter 2026 deliveries of 109,178 vehicles, up 25.4% year-over-year, and September deliveries of 37,408 units as evidence of operational momentum.

Nio's Hong Kong-listed shares also rose Friday.