NIO Stock – Why NIO Stock Dropped Yesterday
What happened Many stocks in the electric-vehicle (EV) sector are actually sinking these days, and Chinese EV maker NIO (NYSE: NIO) is no different. With its fourth quarter and full year 2020 earnings looming, shares decreased almost as ten % Thursday and stay lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings today, however, the results should not be worrying investors in the industry. Li Auto noted a surprise profit for its fourth quarter, which can bode well for what NIO has got to say when it reports on Monday, March one.
Though investors are knocking back stocks of those top fliers today after extended runs brought high valuations.
Li Auto reported a surprise optimistic net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses give slightly different products. Li’s One SUV was developed to serve a specific niche in China. It provides a tiny gasoline engine onboard which may be utilized to recharge the batteries of its, allowing for longer traveling 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 % along with 111 % year-over-year benefits, respectively. NIO Stock just recently announced its 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, actually fallen more than 20 % at highs earlier this season. NIO’s earnings on Monday might help relieve investor stress over the stock’s of exceptional valuation. But for now, a correction continues to be under way.
NIO Stock – Why NYSE: NIO Felled