NIO Stock – Why NYSE: NIO Dropped Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth quarter and full year 2020 earnings looming, shares dropped as much as 10 % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) noted its fourth-quarter earnings today, but the results should not be scaring investors in the industry. Li Auto noted a surprise profit for its fourth quarter, which may bode very well for what NIO has got to tell you in the event it reports on Monday, March 1.
however, investors are knocking back stocks of those high fliers today after extended 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 businesses offer somewhat different products. Li’s One SUV was designed to offer a specific niche in China. It includes a little gasoline engine onboard which could be used to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 as well as 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO Stock just recently announced its very first deluxe sedan, the ET7, which will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than twenty % from highs earlier this season. NIO’s earnings on Monday can help alleviate investor stress over the stock’s of exceptional valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped