Employees make checks at an inspection line during a media tour of the Nio Inc. production facility in Hefei, Anhui province, China, on Friday, Dec. 4, 2020.

Qilai Shen | Bloomberg | Getty Images

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Shanghai-based Nio may not pose the threat to Tesla that many are expecting, according to Citi. The firm cut the red-hot electric vehicle stock to a neutral rating, saying Nio’s new sedan is “good but not enough to make any critical changes from Tesla’s challenge.”