Nio Inc. (NYSE:NIO) shares were trading higher Tuesday after UBS upgraded the stock and the company moved to ship a new model to dealers.

UBS analyst Paul Gong raised his rating on Nio from Neutral to Buy and lifted the price forecast from $6.2 to $8.5.

The Chinese electric vehicle maker has begun nationwide shipments of its third-generation ES8 SUV to retail locations in China, positioning vehicles for immediate deliveries once the model officially launches later this week.

Also Read: Oklo Stock Is Sliding Tuesday: What’s Going On?

CnEVPost reported that Nio confirmed on Weibo that the ES8 is being dispatched to its store network ahead of the vehicle’s formal debut at Nio Day 2025 in Hangzhou, Zhejiang, scheduled for September 20.

In the run-up to the launch, customers were allowed to pre-select configurations starting September 12; test drives began on September 10, and several showrooms extended hours to handle heightened interest, the report said.

First unveiled on August 21, the third-generation ES8 features a standard 100-kWh battery pack. Presale pricing starts at 416,800 Chinese yuan ($58,530), a 25% reduction from the prior model’s base price of 556,000 yuan.

Under Nio’s Battery-as-a-Service plan, the SUV begins at 308,800 yuan, down from 428,000 yuan for the earlier 100-kWh version, CnEVPost added.

By shipping vehicles before the official launch, Nio aims to accelerate deliveries and boost early sales momentum, a tactic it also used with the Onvo L90 SUV.

According to Benzinga Pro, NIO stock has gained more than 28% over the past year. Investors can also access Nio through the Invesco Golden Dragon China ETF (NASDAQ:PGJ).

Price Action: NIO shares were trading higher by 7.09% to $6.950 at last check Tuesday.

Read Also: 

• Trump Wants To End Quarterly Reporting Requirements--Not Everyone Agrees

Photo by Robert Way via Shutterstock