NIO Stock – Why NIO Stock Dropped
What occurred Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen as much as 10 % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, however, the benefits shouldn’t be worrying investors in the industry. Li Auto reported a surprise gain for the fourth quarter of its, which may bode very well for what NIO has to say in the event it reports on Monday, March one.
although investors are knocking back stocks of those top fliers today after extended runs brought high valuations.
Li Auto reported a surprise optimistic net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies provide somewhat different products. Li’s One SUV was developed to offer a specific niche in China. It provides a small gasoline engine onboard that can be harnessed to recharge its batteries, 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 profits, respectively. NIO Stock not too long ago announced its first deluxe 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 20 % from highs earlier this season. NIO’s earnings on Monday can help soothe investor stress over the stock’s top valuation. But for today, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped