NIO Stock – Why NYSE: NIO Dropped
What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is no different. With its fourth quarter and full-year 2020 earnings looming, shares fallen almost as ten % Thursday and remain downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, however, the results shouldn’t be unnerving investors in the industry. Li Auto noted a surprise profit for its fourth quarter, which can bode well for what NIO has to point out if this reports on Monday, March one.
Though investors are knocking back stocks of those top fliers today after extended runs brought huge valuations.
Li Auto noted a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses give slightly different products. Li’s One SUV was created to serve a certain niche in China. It provides a little gasoline 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 % along with 111 % year-over-year benefits, respectively. NIO Stock not too long ago announced its very first luxury 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 year. NIO’s earnings on Monday can help relieve investor anxiety over the stock’s top valuation. But for today, a correction remains under way.
NIO Stock – Why NIO Stock Dropped Thursday