NIO Stock – Why NIO Stock Dropped Thursday
What happened Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV maker NIO (NYSE: NIO) is no different. With its fourth quarter and full-year 2020 earnings looming, shares decreased pretty much as 10 % Thursday and remain lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) noted its fourth-quarter earnings today, though the outcomes should not be frightening investors in the sector. Li Auto noted a surprise gain for the fourth quarter of its, which may bode well for what NIO has to tell you if this reports on Monday, March one.
Though investors are knocking back stocks of these high fliers today after extended runs brought huge valuations.
Li Auto noted a surprise positive net earnings of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses give somewhat different products. Li’s One SUV was designed to serve a certain niche in China. It provides a tiny gasoline engine onboard that may be harnessed to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 as well as 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year gains, respectively. NIO Stock just 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, actually fallen more than 20 % from highs earlier this year. NIO’s earnings on Monday can help relieve investor nervousness over the stock’s top valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Felled Thursday