NIO Stock – Why NIO Stock Felled Thursday
What happened Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth quarter and full-year 2020 earnings looming, shares decreased as much as 10 % 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 today, though the outcomes shouldn’t be scaring investors in the industry. Li Auto reported a surprise gain for the fourth quarter of its, which may 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 high fliers today after extended runs brought huge valuations.
Li Auto noted a surprise positive net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses offer somewhat different products. Li’s One SUV was designed to deliver a specific niche in China. It contains a little fuel engine onboard which can be utilized 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 and 17,353 throughout its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock recently announced its first high end sedan, the ET7, that will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, already fallen more than twenty % from highs earlier this season. NIO’s earnings on Monday can help relieve investor stress over the stock’s top valuation. But for today, a correction continues to be under way.
NIO Stock – Why NIO Stock Dropped