Investing.com — Li Auto (NASDAQ:) shares have rallied Thursday after Nomura analyst Martin Heung initiated coverage with a buy rating and $43.40 price target.

Heung’s price target is a 55% potential upside for Li Auto’s shares price. It started at $29 on Tuesday and is up more than 2% today.

The Nomura analyst described the Chinese electric vehicle company as being “renowned as one of the star domestic EV start-ups,” alongside NIO (NYSE:) and XPeng (NYSE:).

According to Heung, Li has differentiated itself from the pack with its extended-range-electric-vehicle (EREV), which he believes will “allow more skeptical car buyers to dip their toes in the EV world” without the need to worry about charging.

Heung feels that EREV’s dual-power vehicles can reduce problems like range anxiety and lengthy charging queues. They also allow OEMs like Li to access regional markets without the need for recharging infrastructure.

Li revealed that 7,094 Li ONEs were delivered in September. That’s an increase of 102.5% from the year before. The company also delivered 25,116 Li ONEs in the third quarter, an increase of 190.0% over the previous year.

Lucid Motors (NASDAQ:) recently broke the record for range, smashing past the 500-mile mark with its Lucid Air luxury electric sports sedan.