NIO Stock – Why NIO Stock Dropped Yesterday
What took place Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is no different. With its fourth quarter and full year 2020 earnings looming, shares fallen 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) noted its fourth-quarter earnings nowadays, though the benefits shouldn’t be unnerving investors in the industry. Li Auto reported a surprise profit for its fourth quarter, which can bode well for what NIO has to tell you in the event it reports on Monday, March one.
however, investors are knocking back stocks of these high fliers today after lengthy runs brought huge valuations.
Li Auto reported a surprise optimistic net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses provide somewhat different products. Li’s One SUV was designed to deliver a specific niche in China. It contains a tiny gas engine onboard which can be used to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 within its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO Stock recently announced its first deluxe sedan, the ET7, which 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 highs earlier this year. NIO’s earnings on Monday could help soothe investor anxiety over the stock’s high valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Thursday