NIO Stock – Why NIO Stock Dropped Yesterday
What took place Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV producer NIO (NYSE: NIO) is no different. 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 today, although the outcomes shouldn’t be scaring investors in the sector. Li Auto reported a surprise gain for its fourth quarter, which could bode well for what NIO has to tell you if this reports on Monday, March one.
But investors are knocking back stocks of those high 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 slightly different products. Li’s One SUV was developed to offer a specific niche in China. It provides a tiny fuel engine onboard which may be utilized to recharge the batteries of its, 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 % and 111 % year-over-year gains, respectively. NIO Stock just 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, actually fallen more than 20 % from your highs earlier this year. NIO’s earnings on Monday could help alleviate investor stress over the stock’s of good valuation. But for today, a correction stays under way.
NIO Stock – Why NYSE: NIO Felled Thursday