NIO Stock – Why NYSE: NIO Dropped Thursday
What happened Many stocks in the electric-vehicle (EV) sector are actually sinking today, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth-quarter and full year 2020 earnings looming, shares fallen almost as ten % Thursday and remain downwards 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, but the results shouldn’t be worrying investors in the sector. Li Auto reported a surprise benefit for its fourth quarter, which may bode well for what NIO has got to point out when it reports on Monday, March 1.
But investors are knocking back stocks of these top 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 give somewhat different products. Li’s One SUV was designed to serve a specific niche in China. It includes a small gasoline engine onboard which can be utilized to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 and 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year benefits, respectively. NIO Stock not too long ago 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 20 % from your highs earlier this year. NIO’s earnings on Monday can help alleviate investor nervousness over the stock’s of good valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Dropped Thursday