NIO Stock – Why NYSE: NIO Dropped Thursday
What happened Many stocks in the electric-vehicle (EV) sector are sinking these days, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth-quarter and full-year 2020 earnings looming, shares dropped pretty much as ten % 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) claimed its fourth quarter earnings today, however, the benefits should not be scaring investors in the sector. Li Auto reported a surprise profit for its fourth quarter, which may bode well for what NIO has to point out in the event it reports on Monday, March 1.
Though investors are actually knocking back stocks of those top fliers today after extended runs brought high valuations.
Li Auto noted a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was developed to offer a specific niche in China. It contains a small gasoline engine onboard which can be utilized to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 throughout its fourth quarter. These represented 352 % and 111 % year-over-year gains, respectively. NIO Stock recently announced its very first high end sedan, the ET7, which will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, already fallen more than 20 % at highs earlier this season. NIO’s earnings on Monday can help relieve investor anxiety over the stock’s high valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Felled