NIO Stock – Why NYSE: NIO Dropped Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth-quarter and full-year 2020 earnings looming, shares decreased 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 nowadays, though the benefits should not be frightening investors in the sector. Li Auto noted a surprise profit for its fourth quarter, which could bode well for what NIO has to tell you when it reports on Monday, March 1.
however, investors are knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise optimistic net revenue of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses offer slightly different products. Li’s One SUV was created to deliver a specific niche in China. It provides a small gasoline engine onboard that can be harnessed 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 within its fourth quarter. These represented 352 % as well as 111 % year-over-year benefits, respectively. NIO Stock not too long ago announced its very first high end sedan, the ET7, that 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 year. NIO’s earnings on Monday can help ease investor stress over the stock’s high valuation. But for now, a correction stays under way.
NIO Stock – Why NYSE: NIO Felled