NIO Stock – Why NIO Stock Dropped
What took place Many stocks in the electric-vehicle (EV) sector are sinking these days, and Chinese EV producer NIO (NYSE: NIO) is no different. With its fourth-quarter and full-year 2020 earnings looming, shares dropped almost as ten % Thursday and remain down 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, although the results should not be worrying investors in the sector. Li Auto noted a surprise gain for its fourth quarter, which may bode very well for what NIO has to tell you when it reports on Monday, March one.
But investors are knocking back stocks of those high fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise optimistic net revenue 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 deliver a certain niche in China. It provides a small gas engine onboard that may 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 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 high end sedan, the ET7, which will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, by now fallen more than 20 % from highs earlier this season. NIO’s earnings on Monday could help soothe investor anxiety over the stock’s top valuation. But for now, a correction remains under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday