NIO Stock – Why NYSE: NIO Felled Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV producer NIO (NYSE: NIO) is no different. With its fourth quarter and full year 2020 earnings looming, shares dropped pretty much as ten % Thursday and stay 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 scaring investors in the industry. Li Auto reported a surprise profit for the fourth quarter of its, which can bode well for what NIO has to point out when it reports on Monday, March 1.
But investors are knocking back stocks of these top fliers today after lengthy 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 companies provide somewhat different products. Li’s One SUV was designed to deliver a certain niche in China. It provides a small fuel engine onboard which could be harnessed 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 within its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, 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, by now fallen more than twenty % at highs earlier this year. NIO’s earnings on Monday could help alleviate investor anxiety over the stock’s high valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Thursday