NIO Stock – Why NYSE: NIO Felled Yesterday
What took place Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full year 2020 earnings looming, shares decreased as much as 10 % Thursday and remain downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) noted its fourth quarter earnings today, however, the outcomes should not be worrying investors in the sector. Li Auto noted a surprise profit for its fourth quarter, which could bode very well for what NIO has got to point out if this reports on Monday, March one.
But investors are actually knocking back stocks of those top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies provide slightly different products. Li’s One SUV was designed to offer a specific niche in China. It provides a tiny gas engine onboard that could be harnessed to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year benefits, respectively. NIO Stock just recently announced its first luxury 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 twenty % from highs earlier this year. NIO’s earnings on Monday could help ease investor anxiety over the stock’s top valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Thursday