NIO Stock – Why NYSE: NIO Dropped
NIO Stock – Why NIO Stock Dropped Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV maker NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full year 2020 earnings looming, shares fallen as much 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 today, however, the results should not be unnerving investors in the industry. Li Auto reported a surprise gain for the fourth quarter of its, which can bode well for what NIO has got to tell you in the event it reports on Monday, March 1.
But investors are knocking back stocks of those high fliers today after lengthy runs brought huge valuations.
Li Auto reported a surprise optimistic net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies provide somewhat different products. Li’s One SUV was designed to offer a certain niche in China. It provides a tiny gas engine onboard which could be utilized to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 as well as 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year benefits, respectively. NIO Stock recently announced its very 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 % at highs earlier this season. NIO’s earnings on Monday can help ease investor stress over the stock’s top valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped Thursday