NIO Stock – Why NYSE: NIO Dropped Thursday
What occurred Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is actually no different. With its fourth quarter and full year 2020 earnings looming, shares fallen as much as ten % Thursday and stay down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, but the benefits should not be worrying investors in the industry. Li Auto noted a surprise gain for its fourth quarter, which may bode very well for what NIO has to say in the event it reports on Monday, March one.
although investors are knocking back stocks of those high fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses offer somewhat different products. Li’s One SUV was designed to deliver a certain niche in China. It provides a tiny fuel engine onboard that can be used to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 throughout its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO Stock not too long ago announced its very first high end sedan, the ET7, that will also have a new longer range battery option.
Including today’s drop, shares have, according to FintechZoom, by now fallen more than 20 % from your highs earlier this season. NIO’s earnings on Monday might help alleviate investor nervousness over the stock’s of exceptional valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped