NIO Stock – Why NIO Stock Dropped Yesterday
What took place Many stocks in the electric-vehicle (EV) sector are actually sinking today, and Chinese EV maker NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen as much as ten % Thursday and stay lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) noted its fourth quarter earnings nowadays, although the benefits should not be frightening investors in the sector. Li Auto reported a surprise gain for its fourth quarter, which could bode very well for what NIO has to say in the event it reports on Monday, March 1.
But investors are knocking back stocks of those top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies provide slightly different products. Li’s One SUV was created to serve a certain niche in China. It contains a small gasoline engine onboard which could be utilized to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 and 17,353 within its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock recently announced its very first deluxe sedan, the ET7, that will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, by now fallen more than 20 % from highs earlier this year. NIO’s earnings on Monday can help ease investor stress over the stock’s top valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Thursday