NIO Stock – Why NIO Stock Dropped Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full-year 2020 earnings looming, shares dropped almost as 10 % Thursday and stay lower 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, though the outcomes should not be frightening investors in the industry. Li Auto noted a surprise gain for its fourth quarter, which may bode well for what NIO has got to say in the event it reports on Monday, March one.
But investors are actually knocking back stocks of those 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 certain niche in China. It includes a small fuel engine onboard which may be used to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 throughout its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO Stock just recently announced its first luxury sedan, the ET7, that will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than 20 % from highs earlier this season. NIO’s earnings on Monday could help relieve investor stress over the stock’s top valuation. But for now, a correction continues to be under way.
NIO Stock – Why NYSE: NIO Dropped Thursday