NIO Stock – Why NIO Stock Dropped Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is actually no different. With its fourth quarter and full year 2020 earnings looming, shares dropped almost 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) claimed its fourth quarter earnings today, but the outcomes should not be scaring investors in the industry. Li Auto reported a surprise gain for its fourth quarter, which may bode well for what NIO has to say if this reports on Monday, March one.
Though investors are actually knocking back stocks of those high fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses offer somewhat different products. Li’s One SUV was developed to deliver a specific niche in China. It includes a small fuel engine onboard that could be used to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO Stock not too long ago announced its first deluxe sedan, the ET7, that will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than twenty % at highs earlier this year. NIO’s earnings on Monday might help alleviate investor anxiety over the stock’s of good valuation. But for today, a correction remains under way.
NIO Stock – Why NYSE: NIO Dropped