NIO Stock – Why NYSE: NIO 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 actually no different. With its fourth-quarter and full year 2020 earnings looming, shares decreased pretty much as 10 % 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) reported its fourth-quarter earnings today, although the results shouldn’t be unnerving investors in the sector. Li Auto reported a surprise profit for the fourth quarter of its, which could bode very well for what NIO has to tell you in the event it reports on Monday, March one.
however, investors are knocking back stocks of these top fliers today after extended runs brought high valuations.
Li Auto reported a surprise positive net revenue of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies give slightly different products. Li’s One SUV was developed to offer a specific niche in China. It contains a small gasoline 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 as well as 17,353 in its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock just recently announced its first luxury sedan, the ET7, which will also have a new longer range battery option.
Including today’s drop, shares have, according to FintechZoom, already fallen more than twenty % from highs earlier this season. NIO’s earnings on Monday might help relieve investor anxiety over the stock’s of good valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Felled Thursday