NIO Stock – Why NYSE: NIO Dropped Thursday
What took place Many stocks in the electric-vehicle (EV) sector are sinking today, 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 down 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 nowadays, though the outcomes should not be worrying investors in the sector. Li Auto noted a surprise profit for the fourth quarter of its, which can bode very well for what NIO has got to say when it reports on Monday, March one.
But investors are knocking back stocks of these top fliers today after extended runs brought huge 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 provide slightly different products. Li’s One SUV was developed to serve a specific niche in China. It provides a tiny gasoline engine onboard which can be used to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 within its fourth quarter. These represented 352 % and 111 % year-over-year gains, respectively. NIO Stock 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, already fallen more than 20 % from highs earlier this season. NIO’s earnings on Monday can help alleviate investor anxiety over the stock’s high valuation. But for today, a correction continues to be under way.
NIO Stock – Why NIO Stock Dropped Yesterday