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 fallen pretty much as 10 % Thursday and stay down 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 nowadays, but 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 to say if this reports on Monday, March one.
But investors are actually knocking back stocks of these high fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise optimistic net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was developed to deliver a certain niche in China. It provides a little gasoline engine onboard which can be harnessed 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 within its fourth quarter. These represented 352 % along with 111 % year-over-year benefits, respectively. NIO Stock recently announced its first deluxe sedan, the ET7, that 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 could help alleviate investor anxiety over the stock’s high valuation. But for today, a correction stays under way.
NIO Stock – Why NIO Stock Felled Thursday