NIO Stock – Why NYSE: NIO Dropped Yesterday
What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares fallen pretty 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) reported its fourth quarter earnings nowadays, although the outcomes shouldn’t be scaring investors in the sector. Li Auto reported a surprise gain for the fourth quarter of its, which could bode well for what NIO has to tell you when it reports on Monday, March 1.
But 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 because of its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was created to deliver a specific niche in China. It provides a small gasoline engine onboard that may be used to recharge the batteries of its, 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 recently announced its first deluxe sedan, the ET7, that will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, by now fallen more than 20 % from your highs earlier this year. NIO’s earnings on Monday can help alleviate investor anxiety over the stock’s of good valuation. But for now, a correction continues to be under way.
NIO Stock – Why NYSE: NIO Dropped Thursday