NIO Stock – Why NIO Stock Dropped Yesterday
What happened Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full-year 2020 earnings looming, shares dropped almost as 10 % Thursday and stay lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings today, though the results should not be unnerving investors in the industry. Li Auto noted a surprise profit for the fourth quarter of its, which could bode very well for what NIO has got to say in the event it reports on Monday, March one.
Though investors are actually knocking back stocks of these top fliers today after extended runs brought high valuations.
Li Auto reported a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer somewhat different products. Li’s One SUV was designed to offer a specific niche in China. It provides a tiny gas engine onboard that could be utilized to recharge its batteries, allowing for longer traveling 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 % and 111 % year-over-year profits, respectively. NIO Stock just recently announced its first deluxe sedan, the ET7, which will also have a new longer range battery option.
Including today’s drop, shares have, according to FintechZoom, by now fallen more than twenty % from your highs earlier this season. NIO’s earnings on Monday might help soothe investor stress over the stock’s high valuation. But for today, a correction stays under way.
NIO Stock – Why NYSE: NIO Felled