NIO Stock – Why NIO Stock Dropped Yesterday
What happened Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV developer NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares dropped almost as ten % Thursday and stay down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) noted its fourth quarter earnings nowadays, although the outcomes shouldn’t be scaring investors in the industry. Li Auto noted a surprise gain for the fourth quarter of its, which may bode very well for what NIO has to point out when it reports on Monday, March one.
But investors are knocking back stocks of these high fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise positive net earnings 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 developed to offer a certain niche in China. It includes a tiny fuel engine onboard which could be utilized to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year benefits, respectively. NIO Stock not too long ago announced its first luxury sedan, the ET7, which will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, by now fallen more than twenty % from your highs earlier this season. NIO’s earnings on Monday might help relieve investor stress over the stock’s top valuation. But for today, a correction stays under way.
NIO Stock – Why NYSE: NIO Dropped Thursday