NIO Stock – Why NYSE: NIO Felled Yesterday
What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen almost as ten % Thursday and stay down 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, however, the results should not be unnerving investors in the sector. Li Auto noted a surprise profit for its fourth quarter, which can bode very well for what NIO has got to tell you when it reports on Monday, March one.
But investors are knocking back stocks of these top fliers today after extended runs brought high valuations.
Li Auto noted a surprise positive net earnings 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 designed to offer a specific niche in China. It includes a little gas engine onboard that could be used to recharge the batteries of its, allowing for longer traveling 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 % and 111 % year-over-year benefits, respectively. NIO Stock not too long ago announced its very first deluxe 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 season. NIO’s earnings on Monday could help relieve investor nervousness over the stock’s of good valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Dropped