What happened

Before the start of Friday's trading session, Nio (NIO -1.11%) stock had charged higher every day this week. Thanks to speculation of the company's international expansion and an analyst's auspicious outlook, it's likely that shares of the electric car stock will lock in another day of gains today. 

As of 2:06 p.m. ET, shares of Nio are up 10%.

So what

Investors' hearts seem to be racing today after Nio revealed plans to expand beyond China. The company tweeted today that it plans on developing its presence in the Netherlands with the opening of a Nio Hub.

Details of what exactly this Nio Hub will entail are unclear, but investors are clearly enthusiastic about the prospect of moving into a new market.

Providing an additional catalyst for the stock's rise, Tim Hsiao, an analyst with Morgan Stanley, is taking a more bullish approach to shares of Nio. Hsiao raised the price target on Nio stock to $18.70 from $12. Based on the stock's closing price of $13.24 yesterday, Hsiao's price target implies upside of more than 41%. In a note to investors, Hsiao said, "The lackluster 1H23 is now behind us, and we are starting to see an inflection point of meaningful operational improvement and potential rerating opportunities, backed by volume upturn, policy tailwinds, autonomous driving and technology monetization."

Now what

Nio isn't very transparent with its international sales, so it seems premature for investors to speculate that the opening of the Nio Hub in the Netherlands will equate to significant revenue growth. As the company suggests in its tweet, investors should "stay tuned" for further insight.

With regard to the analyst's price target, investors should be circumspect. Oftentimes, Wall Street has a short investing horizon, and there's no indication of Hsiao's expectations for the electric vehicle stock. Instead, investors should base their buying on more concrete matters such as what the company reports regarding quarterly earnings.