NIO Stock – Why NYSE: NIO Dropped Thursday
What occurred Many stocks in the electric-vehicle (EV) sector are actually sinking today, and Chinese EV maker NIO (NYSE: NIO) is no exception. With its fourth-quarter and full-year 2020 earnings looming, shares dropped almost as 10 % Thursday and stay downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, but the results shouldn’t be unnerving investors in the sector. Li Auto noted a surprise gain for the fourth quarter of its, which may bode well for what NIO has got to point out in the event it reports on Monday, March 1.
however, investors are actually knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies give somewhat different products. Li’s One SUV was created to serve a specific niche in China. It contains a small gasoline engine onboard which can be used 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 as well as 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO Stock not too long ago announced its 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 year. NIO’s earnings on Monday could help relieve investor nervousness over the stock’s of good valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Dropped