NIO Stock – Why NIO Stock 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 exception. With its fourth-quarter and full year 2020 earnings looming, shares dropped almost as 10 % Thursday and remain downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) noted its fourth quarter earnings nowadays, though the benefits should not be scaring investors in the sector. Li Auto noted a surprise gain for the fourth quarter of its, which could bode well for what NIO has got to point out if this reports on Monday, March one.
But investors are actually knocking back stocks of these top fliers today after lengthy runs brought huge valuations.
Li Auto reported a surprise positive net income 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 contains a tiny gas engine onboard which could be used to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 within its fourth quarter. These represented 352 % along with 111 % year-over-year profits, respectively. NIO Stock not too long ago announced its first luxury sedan, the ET7, which will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, by now fallen more than 20 % at highs earlier this year. NIO’s earnings on Monday could help relieve investor nervousness over the stock’s of good valuation. But for today, a correction stays under way.
NIO Stock – Why NYSE: NIO Felled