Morgan Stanley Says Hong Kong Index Listing Is Bullish for NIO Stock

Morgan Stanley analyst Tim Hsiao reiterated his "overweight" rating and $34 price target for $NIO Inc(NIO.US)$
The analyst believes a new Hong Kong index inclusion will provide $NIO Inc(NIO.US)$ with more liquidity and diversity
Shares of NIO stock are down roughly 50% year-to-date (YTD)
Despite a positive Morgan Stanley note and the $S&P 500 Index(.SPX.US)$ and  $Invesco QQQ Trust(QQQ.US)$ in the green, shares of Nio closed down 2.7% today. This is possibly attributable to competitor $XPeng(XPEV.US)$ , which announced first-quarter earnings. While revenue and earnings per share came in above analyst estimates, the electric vehicle company's guidance is what's really on investors' minds.
$XPeng(XPEV.US)$ guided for Q2 revenue between $1.02 billion and $1.13 billion. However, analysts were expecting revenue of $1.25 billion. In recent months, Covid-19 lockdowns in China, component shortages and supply-chain challenges have all hampered Chinese EV companies. NIO stock is no exception.
Still, Morgan Stanley believes the company's recent inclusion on the Hang Seng TECH Index is a step in the right direction.
$NIO Inc(NIO.US)$ $NIO Inc. USD OV(NIO.SG)$ $NIO-SW(09866.HK)$