NIO Stock – Why NYSE: NIO Felled
What occurred Many stocks in the electric-vehicle (EV) sector are actually sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full year 2020 earnings looming, shares dropped pretty much as 10 % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings today, however, the results shouldn’t be worrying investors in the sector. Li Auto noted a surprise gain for its fourth quarter, which can bode well for what NIO has got to say in the event it reports on Monday, March 1.
But investors are knocking back stocks of those top fliers today after extended runs brought high valuations.
Li Auto reported a surprise optimistic net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses offer somewhat different products. Li’s One SUV was designed to serve a certain niche in China. It includes a small gasoline engine onboard that can 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 plus 17,353 within its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO Stock just recently announced its first luxury sedan, the ET7, which will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than twenty % from your highs earlier this year. NIO’s earnings on Monday might help ease investor stress over the stock’s top valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Yesterday