NIO Stock – Why NIO Stock Dropped Thursday
What took place Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth-quarter and full year 2020 earnings looming, shares decreased almost as ten % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) claimed its fourth quarter earnings today, though the benefits shouldn’t be worrying investors in the sector. Li Auto reported a surprise profit for its fourth quarter, which could bode well for what NIO has got to say if this reports on Monday, March one.
however, investors are actually knocking back stocks of those high fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies give somewhat different products. Li’s One SUV was developed to offer a certain niche in China. It contains a little fuel engine onboard that could be utilized 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 throughout its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock just recently announced its very first high end sedan, the ET7, which will also have a new longer range battery option.
Including today’s drop, shares have, according to FintechZoom, already fallen more than 20 % at highs earlier this season. NIO’s earnings on Monday could help alleviate investor stress over the stock’s of good valuation. But for today, a correction continues to be under way.
NIO Stock – Why NIO Stock Felled Thursday