NIO Stock – Why NYSE: NIO Dropped
What took place Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares dropped as much as ten % Thursday and remain lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) noted its fourth quarter earnings today, however, the outcomes should not be unnerving investors in the sector. Li Auto reported a surprise benefit for its fourth quarter, which can bode well for what NIO has got to tell you when it reports on Monday, March one.
although investors are knocking back stocks of these top fliers today after extended runs brought huge valuations.
Li Auto reported a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses offer slightly different products. Li’s One SUV was developed to serve a specific niche in China. It includes a small gasoline engine onboard which may be harnessed to recharge its batteries, 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 % as well as 111 % year-over-year benefits, respectively. NIO Stock just recently announced its first high end 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 20 % from highs earlier this year. NIO’s earnings on Monday could help soothe investor anxiety over the stock’s high valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Dropped Thursday