NIO Stock – Why NIO Stock Dropped
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV maker NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen pretty much as ten % Thursday and stay downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) noted its fourth quarter earnings nowadays, though the outcomes shouldn’t be worrying investors in the industry. Li Auto reported a surprise gain for the fourth quarter of its, which may bode very well for what NIO has got to tell you in the event 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 positive net revenue of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies provide somewhat different products. Li’s One SUV was developed to deliver a specific niche in China. It includes a tiny gasoline engine onboard that can be used to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year gains, respectively. NIO Stock recently announced its first luxury sedan, the ET7, that will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, actually fallen more than 20 % from highs earlier this season. NIO’s earnings on Monday might help ease investor nervousness over the stock’s of good valuation. But for now, a correction stays under way.
NIO Stock – Why NYSE: NIO Dropped