What happened American depositary shares of Chinese electric-vehicle maker NIO (NYSE: NIO) are rising today, up 14.9% as of 9:45 a.m. EDT, after a J.P. Morgan analyst upgraded the stock in a bullish note. So what In a note released before the U.S. markets opened on Wednesday, analyst Nick Lai upgraded NIO to overweight from neutral, with a price target of $40, up from $14. Lai wrote that the share of China's light-vehicle market held by "new energy vehicles" -- China's catch-all term for hybrids, fuel cell vehicles, and battery-electrics -- is accelerating and will quadruple by 2025. Lai sees that as a rising tide, driven to some extent by Tesla's recent emphasis on the Chinese market, that will lift many boats, including (and perhaps especially) NIO's. NIO began deliveries of its latest model, the sporty EC6, in September. Image source: NIO. Specifically, Lai expects NIO to be a long-term winner in the premium portion of the the "smart electric vehicle" segment, thanks to its strong products, relative financial strength, and backing by economic-development authorities in China's industrial Anhui province. (The analyst sees Xpeng as a potential mass-market leader in the same segment, with products slotted below NIO's upscale offerings.) While NIO's stock has already run up sharply in 2020, Lai thinks its current valuation leaves room for "meaningful upside" over the next few years. Now what Auto investors intrigued by NIO's dramatic turnaround story won't have to wait too long for an update from management. The company is expected to report its third-quarter earnings in early November. 10 stocks we like better than NIO Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and NIO Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.Source