NIO Stock – Why NYSE: NIO Dropped
What happened Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no different. 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 developer Li Auto (NASDAQ: LI) noted its fourth-quarter earnings nowadays, but the results should not be worrying investors in the sector. Li Auto noted a surprise gain for the fourth quarter of its, which could bode very well for what NIO has to point out if this reports on Monday, March one.
Though investors are actually knocking back stocks of those top fliers today after lengthy runs brought huge valuations.
Li Auto reported a surprise positive net revenue of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies give slightly different products. Li’s One SUV was developed to serve a specific niche in China. It includes a little gas engine onboard that may be harnessed to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 throughout its fourth quarter. These represented 352 % as well as 111 % year-over-year benefits, respectively. NIO Stock just 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 twenty % from highs earlier this year. NIO’s earnings on Monday can help alleviate investor nervousness over the stock’s of good valuation. But for now, a correction continues to be under way.
NIO Stock – Why NYSE: NIO Felled Thursday