NIO Stock – Why NYSE: NIO Dropped Yesterday
What happened Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is no exception. 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 producer Li Auto (NASDAQ: LI) noted its fourth quarter earnings today, although the results shouldn’t be worrying investors in the sector. Li Auto noted a surprise benefit for its fourth quarter, which can bode well for what NIO has got to point out if this reports on Monday, March 1.
Though investors are knocking back stocks of these high fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies give somewhat different products. Li’s One SUV was created to offer a specific niche in China. It contains a little fuel engine onboard which may be used to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year benefits, respectively. NIO Stock not too long ago announced its very first deluxe sedan, the ET7, which 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 highs earlier this season. NIO’s earnings on Monday can help ease investor nervousness over the stock’s top valuation. But for now, a correction remains under way.
NIO Stock – Why NYSE: NIO Dropped