NIO Stock – Why NYSE: NIO Dropped Yesterday
What occurred Many stocks in the electric-vehicle (EV) sector are actually 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 pretty much as ten % Thursday and stay downwards 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 benefits shouldn’t be worrying investors in the industry. Li Auto noted a surprise profit for its fourth quarter, which can bode very 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 top fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses give slightly different products. Li’s One SUV was designed to deliver a certain niche in China. It includes a little gasoline engine onboard that may be harnessed to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 as well as 17,353 in its fourth quarter. These represented 352 % along with 111 % year-over-year profits, respectively. NIO Stock recently announced its very first luxury sedan, the ET7, that will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, already fallen more than 20 % at highs earlier this year. NIO’s earnings on Monday could help ease investor anxiety over the stock’s high valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped