NIO Stock – Why NYSE: NIO Dropped
What took place Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV developer NIO (NYSE: NIO) is no exception. With its fourth-quarter and full year 2020 earnings looming, shares fallen pretty 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 producer Li Auto (NASDAQ: LI) reported its fourth quarter earnings nowadays, though the outcomes should not be unnerving investors in the sector. Li Auto noted a surprise benefit for the fourth quarter of its, which could bode very well for what NIO has got to tell you if this reports on Monday, March one.
But investors are knocking back stocks of those high fliers today after extended runs brought high valuations.
Li Auto reported a surprise positive 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 developed to deliver a specific niche in China. It contains a tiny gasoline engine onboard that can be harnessed to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 within its fourth quarter. These represented 352 % as well as 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 today’s drop, shares have, according to FintechZoom, by now fallen more than twenty % from your highs earlier this year. NIO’s earnings on Monday might help alleviate investor nervousness over the stock’s high valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Yesterday