NIO Stock – Why NYSE: NIO Dropped
What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full-year 2020 earnings looming, shares decreased almost as 10 % Thursday and stay down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings nowadays, although the outcomes should not be scaring investors in the sector. Li Auto noted a surprise gain for its fourth quarter, which could bode very well for what NIO has got to point out in the event it reports on Monday, March one.
But investors are actually knocking back stocks of those high fliers today after extended 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 offer slightly different products. Li’s One SUV was created to offer a specific niche in China. It includes a little gasoline engine onboard that may be used to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 in its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock recently announced its very 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 season. NIO’s earnings on Monday might help soothe investor nervousness over the stock’s top valuation. But for today, a correction stays under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday