NIO Stock – Why NIO Stock Dropped Yesterday
What took place Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full year 2020 earnings looming, shares fallen 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 developer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings nowadays, however, the results shouldn’t be frightening investors in the industry. Li Auto noted a surprise gain for its fourth quarter, which could bode very well for what NIO has got to say when it reports on Monday, March one.
Though investors are actually knocking back stocks of those high fliers today after extended runs brought huge valuations.
Li Auto reported a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses provide somewhat different products. Li’s One SUV was created to offer a certain niche in China. It includes a little gas engine onboard which can be used to recharge its batteries, 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 benefits, respectively. NIO Stock just recently announced its 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 % from highs earlier this season. NIO’s earnings on Monday might help soothe investor anxiety over the stock’s of exceptional valuation. But for today, a correction stays under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday