NIO Stock – Why NYSE: NIO Dropped
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth quarter and full-year 2020 earnings looming, shares dropped pretty much as 10 % Thursday and stay down 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 nowadays, but the results shouldn’t be unnerving investors in the industry. Li Auto noted a surprise benefit for its fourth quarter, which can bode very well for what NIO has to say when it reports on Monday, March 1.
although investors are knocking back stocks of these high fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies provide slightly different products. Li’s One SUV was created to offer a specific niche in China. It provides a tiny fuel engine onboard which may 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 as well as 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO Stock not too long ago announced its very first luxury sedan, the ET7, which will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than twenty % from your highs earlier this year. NIO’s earnings on Monday might help relieve investor nervousness over the stock’s top valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Felled Thursday