NIO Stock – Why NIO Stock Dropped Thursday
What happened Many stocks in the electric-vehicle (EV) sector are actually sinking these days, and Chinese EV maker NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full-year 2020 earnings looming, shares fallen almost as 10 % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, but the results shouldn’t be worrying investors in the sector. Li Auto noted a surprise profit for the fourth quarter of its, which may 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 noted a surprise positive net earnings of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses provide slightly different products. Li’s One SUV was designed to deliver a certain niche in China. It provides a little gasoline engine onboard which could be used to recharge the batteries of its, allowing for longer travel 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 benefits, respectively. NIO Stock recently announced its very first deluxe sedan, the ET7, which will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, actually fallen more than twenty % at highs earlier this season. NIO’s earnings on Monday might help relieve investor stress over the stock’s top valuation. But for today, a correction remains under way.
NIO Stock – Why NIO Stock Dropped
