NIO Stock – Why NIO Stock Felled Yesterday
What happened Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares dropped as much as ten % Thursday and remain downwards 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, but the benefits shouldn’t be unnerving investors in the sector. Li Auto noted a surprise gain for its fourth quarter, which could bode very well for what NIO has got to point out in the event it reports on Monday, March one.
But investors are actually knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net revenue of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer somewhat different products. Li’s One SUV was designed to offer a certain niche in China. It provides a little gasoline engine onboard which may be utilized to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 in its fourth quarter. These represented 352 % as well as 111 % year-over-year benefits, respectively. NIO Stock not too long ago announced its 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, actually fallen more than twenty % at highs earlier this season. NIO’s earnings on Monday could help ease investor nervousness over the stock’s of good valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Yesterday