NIO Stock – Why NYSE: NIO Felled Thursday
What occurred Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full year 2020 earnings looming, shares dropped as 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 producer Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, although the results shouldn’t be worrying investors in the sector. Li Auto reported a surprise profit for the fourth quarter of its, which could bode very well for what NIO has to point out when it reports on Monday, March 1.
although investors are knocking back stocks of those high fliers today after extended runs brought huge valuations.
Li Auto noted a surprise positive net earnings of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses offer slightly different products. Li’s One SUV was developed to serve a specific niche in China. It contains a tiny gasoline 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 as well as 17,353 throughout its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO Stock just recently announced its first luxury sedan, the ET7, which will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than twenty % at highs earlier this year. NIO’s earnings on Monday might help soothe investor anxiety over the stock’s top valuation. But for today, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped