NIO Stock Price: Racing higher as Elon Musk asks for competition? Small electric carmaker may gain big

Can NIO, an electric car-maker, surge to new highs? The Chinese carmaker is little-known in a world dominated by Elon Musk's Tesla, but the electrical car celebrity, also known for SpaceX and anti-lockdown politics, may have room to run.

Musk complained about the lack of competition, referring to another billionaire VIP, Jeff Bezos of Amazon. He vented his anger at Amazon's downing of a book he wrote before the online retail behemoth reinstated that book. Nevertheless, Musk's comment opens the door for much-needed competition in the EV space.

Fei Fang, an analyst with Goldman Sachs, upgraded his recommendation for NIO, setting a target of $6.40. He cited an improving burn-rate for the firm and suggested it may break even once it hits the 10K car / month production milestone. 

Sales are 30% up on the year despite Elon Musk's high profile and price cuts enacted by Tesla. Moreover, Fang states that Musk's firm lost its prestige gap by lowering the price, making consumers indifferent. 

Citizens across the world have enjoyed the cleaner air that was coronavirus' silver lining. That inspires governments, especially in Europe, to expand their shift toward electric cars. As Washington and Beijing grow further apart, China and the EU may get closer, potentially opening a market for NIO.

NYSE: NIO forecast

The next move higher in NIO's stock price depends on breaking above $6 which is a psychologically significant level, or more precisely, above $6.20, which is the 52-week high. The low in the past 52 weeks was $1.19, so the carmaker is now work more than five times its value at the lows.