NIO Inc. (NIO) is on the rise on Monday after unveiling a new luxury sedan and a big volume battery pack. Following the announcements, both JPMorgan and Bank of America raised their price targets on the shares, with the former saying that NIO should continue to trade more like a "fast-growth" technology/EV stock than a carmaker.

NIO DAY ANNOUNCEMENTS: Over the weekend, NIO unveiled its new sedan, called ET7, and a bigger volume battery pack. The ET7 price will start at $69,193, excluding government subsidies. NIO also announced that it has selected the Nvidia (NVDA) DRIVE Orin system-on-a-chip for its new generation of electric vehicles, which will offer advanced automated driving capabilities. At NIO Day, the company's annual customer event, the EV maker revealed its Nvidia DRIVE Orin-powered supercomputer, dubbed Adam, which will first appear in the ET7 sedan that will ship in China starting in 2022. As the first of NIO's EVs to feature Orin, the flagship ET7 is a "high-performance vehicle that accelerates from zero to 100km in only 3.9 seconds," the company said. It also features a new 150kw battery for extended mileage range, NIO stated.

'FAST-GROWTH' TECH/EV STOCK: JPMorgan analyst Nick Lai raised the firm's price target on NIO Inc. to $75 from $50, while keeping an Overweight rating on the shares. The company's annual showcase for the next new model and technology advancements revealed four strategic milestones, which drives the target increase, Lai told investors in a research note. These include an in-house autonomous driving solution on Nvidia architecture; a solid-state battery for the next new model, the ET7 sedan; the beginning of content monetization, and the commercialization of LiDar. Lai believes NIO will continue to trade more like a "fast-growth" technology/electric vehicle stock than a carmaker, he noted.

ET7 PRICE APPEARS COMPETITIVE: Meanwhile, Bank of America analyst Ming Hsun Lee also raised the firm's price target on NIO Inc. to $70 from $59 and kept a Buy rating on the shares after the company unveiled its new electric sedan that is scheduled to start being delivered in the first quarter of 2022. The analyst highlighted that the ET7's pricing "appears competitive," and that the company said it has adopted solid-state battery technology and looks to deliver a 150kWh solid-state battery pack by the last quarter of 2022.

TESLA TARGET RAISED TO STREET HIGH: Amid the reactions to NIO's event, BofA analyst John Murphy drew attention as he raised the firm's price target on Tesla to a Street-high $900 from $500. The analyst, who keeps a Neutral rating on Tesla shares, said the stock is "driven by growth afforded by valuation." Building automotive industry capacity is expensive and often generates low returns, but "the higher the upward spiral of Tesla's stock goes, the cheaper capital becomes to fund growth, which is then rewarded by investors with a higher stock price," argues Murphy.

PRICE ACTION: In morning trading, shares of NIO have gained over 8% to $63.67. On the flip side, Tesla (TSLA) has dropped about 4% to $842.16 per share.