NIO Stock – Why NYSE: NIO Dropped
What occurred Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no different. With its fourth quarter and full year 2020 earnings looming, shares decreased almost as ten % Thursday and remain lower 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, though the results shouldn’t be unnerving investors in the industry. Li Auto reported a surprise benefit for the fourth quarter of its, which could bode well for what NIO has to point out in the event it reports on Monday, March 1.
however, investors are knocking back stocks of those high fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise positive net revenue 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 deliver a certain niche in China. It includes a tiny gas engine onboard that can be harnessed to recharge the batteries of its, allowing for longer traveling 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 gains, respectively. NIO Stock just recently announced its first high end 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 % at highs earlier this year. NIO’s earnings on Monday can help ease investor anxiety over the stock’s of exceptional valuation. But for today, a correction remains under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday