NIO Stock – Why NIO Stock Dropped Yesterday
What took place Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV maker NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares dropped as much 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) claimed its fourth-quarter earnings today, though the results should not be unnerving investors in the sector. Li Auto noted a surprise gain for its fourth quarter, which could bode well for what NIO has to tell you when it reports on Monday, March 1.
however, investors are knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies provide somewhat different products. Li’s One SUV was developed to serve a certain niche in China. It contains a little gasoline engine onboard that may be used to recharge its batteries, allowing for longer traveling 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 % and 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, already fallen more than 20 % at highs earlier this year. NIO’s earnings on Monday can help relieve investor anxiety over the stock’s high valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Dropped Thursday