Nio could well become the Chinese Tesla

Nio Inc (NYSE: NIO) has made a formidable comeback from the COVID-19 pandemic, which resulted in months of business lockdowns and closings around the world. The Chinese electric vehicle started with record earnings and deliveries in Q2 2020. Strong sales in China are driving the company's comeback In the wake of a global pandemic, there are a number of factors that can affect the company's results. First, China reported a return to strong auto sales after being among the first to show success. The company also benefited from a $ 1 billion investment by local government agencies.  With the successful launch of the updated version of Nio's first electric off-road vehicle, the company has benefited from a growing market in China. This also contributed to the company's surprising record results. The record results have put the electric vehicle manufacturer on its most solid foundation since 2018. Nio faces growing competition Nio's record results come at a very crucial time. While the pandemic may have pushed many startups to the brink of extinction, a rebound in China's auto industry has led to fierce competition among startups looking to make a comeback. Currently, Tesla is the world's largest automaker, but there is hope again that electric vehicle startups will thrive in China before big names such as Ford Motor Company (NYSE: F), General Motors Company (NYSE: GM) and Volkswagen launch their respective EVs deliver. The Chinese electric vehicle maker recently announced better-than-expected results for the second quarter and issued strong guidance for the third quarter of 2020. Alexander Potter, analyst at Piper Sandler, again confirmed a neutral rating for Nio, but raised the projection of the target price from 4 to 14 dollars. On the other hand, Ming Hsun Lee, an analyst at BofA Securities, again confirmed a buy rating and raised the price target from $ 17.40 to $ 18. The company also reported a smaller loss than before, forecast thanks to a higher gross margin. The company reported a high historical vehicle margin of 9.7% plus other items that were 5% higher than forecast.