NIO Stock – Why NYSE: NIO Dropped Thursday
What occurred Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV maker NIO (NYSE: NIO) is no different. With its fourth-quarter and full-year 2020 earnings looming, shares fallen pretty much as ten % Thursday and remain lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings today, but the benefits should not be worrying investors in the industry. Li Auto reported a surprise benefit for the fourth quarter of its, which may bode well for what NIO has got to tell you if this reports on Monday, March one.
But investors are actually knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies give slightly different products. Li’s One SUV was developed to serve a specific niche in China. It includes a small gas engine onboard that can be harnessed to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 as well as 17,353 within its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock just recently announced its very first high end sedan, the ET7, that will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than 20 % at highs earlier this year. NIO’s earnings on Monday might help alleviate investor nervousness over the stock’s of good valuation. But for today, a correction stays under way.
NIO Stock – Why NIO Stock Felled Yesterday