NIO Stock – Why NYSE: NIO Dropped
What happened 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 decreased pretty much as ten % Thursday and stay 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, though the benefits should not be worrying investors in the sector. Li Auto reported a surprise gain for its fourth quarter, which can bode well for what NIO has got to say when it reports on Monday, March one.
however, investors are knocking back stocks of these high fliers today after extended runs brought high valuations.
Li Auto reported a surprise optimistic net revenue 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 serve a specific niche in China. It contains a small gas engine onboard that may be harnessed to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 and 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO Stock not too long ago announced its very first luxury 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 your 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 stays under way.
NIO Stock – Why NYSE: NIO Felled Thursday