NIO Inc (NYSE:NIO) shares are trading higher Tuesday after Morgan Stanley added the stock to its "tactical idea" list.
According to reports, Morgan Stanley expects Nio shares to catch a boost as COVID-19 restrictions are lifted in Shanghai. The analyst firm also expects the EV company to benefit from new subsidies for electric car buyers.
Following a two-month lockdown, authorities in Shanghai have reportedly started removing obstructions from buildings in an effort to prepare the city for reopening on Wednesday.
Official Chinese factory activity data for May also showed significant improvement compared with the previous month, which is helping to lift Chinese stocks. The National Bureau of Statistics said the official manufacturing purchasing managers index rose to 49.6 in May from 47.4 in April, which was above expectations.
According to Chinese media reports, Nio is planning to set up a new manufacturing plant in the United States, which could also be contributing to Tuesday's move higher.
See Also: Why Alibaba, Nio, Chinese Peers Are Struggling For Direction In Hong Kong Today
NIO Price Action: Nio has traded between $11.67 and $55.13 over a 52-week period.
The stock was up 5.2% at $17.43 at press time, according to data from Benzinga Pro
Photo: courtesy of Nio.
