NIO Stock – Why NIO Stock Dropped
What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth quarter and full-year 2020 earnings looming, shares decreased as much as 10 % Thursday and stay downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, however, the results shouldn’t be scaring investors in the industry. Li Auto reported a surprise profit for its fourth quarter, which can bode well for what NIO has got to tell you if this reports on Monday, March 1.
although investors are knocking back stocks of these high fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net revenue of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies offer somewhat different products. Li’s One SUV was developed to deliver a certain niche in China. It includes a small gasoline engine onboard that can be utilized to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 and 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO Stock 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, by now fallen more than twenty % from your highs earlier this season. NIO’s earnings on Monday could help ease investor anxiety over the stock’s high valuation. But for now, a correction remains under way.
NIO Stock – Why NYSE: NIO Dropped