NIO Stock – Why NIO Stock Dropped
What took place Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen as much 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) reported its fourth-quarter earnings today, though the benefits shouldn’t be worrying investors in the sector. Li Auto reported a surprise gain for its fourth quarter, which can bode very well for what NIO has to tell you when it reports on Monday, March 1.
But investors are knocking back stocks of these high fliers today after lengthy runs brought huge 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 businesses provide slightly different products. Li’s One SUV was created to deliver a specific niche in China. It contains a little gas engine onboard which may be used to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 throughout its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO Stock recently announced its 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 20 % from highs earlier this season. NIO’s earnings on Monday might help relieve investor nervousness over the stock’s of exceptional valuation. But for now, a correction continues to be under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday