diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -4375,7 +4375,8 @@
     Returns 0 on success.
     """
     opts = pycompat.byteskwargs(opts)
-    peer = hg.peer(ui, opts, ui.expandpath(dest), create=True)
+    path = urlutil.get_clone_path(ui, dest)[1]
+    peer = hg.peer(ui, opts, path, create=True)
     peer.close()