NIO Stock – Why NIO Stock Dropped
What happened Many stocks in the electric-vehicle (EV) sector are actually sinking these days, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares fallen pretty much as 10 % Thursday and stay downwards 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, although the results should not be unnerving investors in the sector. Li Auto reported a surprise gain for the fourth quarter of its, which could bode very well for what NIO has to point out when it reports on Monday, March one.
Though investors are actually knocking back stocks of these high fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses offer somewhat different products. Li’s One SUV was created to offer a specific niche in China. It contains a little gas engine onboard that could be utilized to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year gains, 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, already fallen more than 20 % at highs earlier this season. NIO’s earnings on Monday might help ease investor nervousness over the stock’s of exceptional valuation. But for now, a correction stays under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday