With the rapid increase in new energy vehicle penetration in China, the Model Y price cut will have limited impact on Nio, and new energy vehicle companies will move forward together, said CICC, a top Chinese investment bank, in a report released on Monday.

CICC maintained its Outperform rating on Nio and raised its price target by 15% to $60, corresponding to a 23% upside.

CICC noted that Nio's data released on January 3 showed record December sales of 7,007 units, up 121% year-on-year and up 32.4% from the previous month.

Nio rose 3.8% to $50.6 in pre-market Monday.