NIO Stock – Why NYSE: NIO Dropped
What occurred 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 decreased pretty much as 10 % 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) noted its fourth quarter earnings today, although the results should not be frightening investors in the sector. Li Auto reported a surprise benefit for the fourth quarter of its, which can bode well for what NIO has to say when it reports on Monday, March 1.
But investors are actually knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was created to serve a certain niche in China. It includes a small gas engine onboard which may be used to recharge its batteries, allowing for longer travel 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 % along with 111 % year-over-year benefits, respectively. NIO Stock recently announced its first high end sedan, the ET7, which will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, already fallen more than 20 % from highs earlier this year. NIO’s earnings on Monday can help relieve investor nervousness over the stock’s of good valuation. But for now, a correction stays under way.
NIO Stock – Why NIO Stock Felled