NIO Stock – Why NIO Stock Dropped Thursday
What occurred Many stocks in the electric-vehicle (EV) sector are actually sinking these days, 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 producer Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, though the results shouldn’t be scaring investors in the sector. Li Auto reported a surprise benefit for its fourth quarter, which may bode very well for what NIO has to tell you in the event it reports on Monday, March one.
although investors are knocking back stocks of those top fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net revenue of $16.5 million for 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 can be harnessed 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 and 17,353 throughout its fourth quarter. These represented 352 % along with 111 % year-over-year profits, 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 present day drop, shares have, according to FintechZoom, already fallen more than twenty % from your highs earlier this year. NIO’s earnings on Monday could help soothe investor nervousness over the stock’s high valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Felled Yesterday