NIO Stock – Why NYSE: NIO Dropped
What occurred Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares dropped almost as 10 % Thursday and remain lower 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 nowadays, but the results shouldn’t be scaring investors in the industry. Li Auto reported a surprise benefit for the fourth quarter of its, which can bode very well for what NIO has to say in the event it reports on Monday, March one.
Though investors are knocking back stocks of these high fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise positive net earnings 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 designed to deliver a certain niche in China. It contains a little gas engine onboard which could be harnessed to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 as well as 17,353 in its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO Stock just recently announced its very first deluxe sedan, the ET7, that will also have a new longer range battery option.
Including today’s drop, shares have, according to FintechZoom, actually fallen more than twenty % at highs earlier this year. NIO’s earnings on Monday might help alleviate investor stress over the stock’s top valuation. But for today, a correction continues to be under way.
NIO Stock – Why NIO Stock Dropped Yesterday