NIO Stock – Why NYSE: NIO Dropped Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full-year 2020 earnings looming, shares dropped as much as ten % Thursday and stay 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, but the benefits shouldn’t be worrying investors in the industry. Li Auto reported a surprise benefit for its fourth quarter, which may bode well for what NIO has to point out when it reports on Monday, March 1.
But investors are actually knocking back stocks of those high fliers today after extended runs brought huge valuations.
Li Auto reported a surprise optimistic net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies give slightly different products. Li’s One SUV was developed to serve a certain niche in China. It includes a small gasoline engine onboard that may be utilized to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 as well as 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO Stock not too long ago announced its 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 20 % from highs earlier this season. NIO’s earnings on Monday could help alleviate investor anxiety over the stock’s top valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Felled