NIO Stock – Why NYSE: NIO Felled Thursday
What happened 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 decreased 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 developer Li Auto (NASDAQ: LI) claimed its fourth quarter earnings today, but the benefits should not be unnerving investors in the industry. Li Auto noted a surprise profit for the fourth quarter of its, which can bode well for what NIO has got to point out when it reports on Monday, March one.
But investors are actually knocking back stocks of those top fliers today after extended runs brought high valuations.
Li Auto reported a surprise positive net earnings of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses provide slightly different products. Li’s One SUV was designed to serve a specific niche in China. It contains a tiny gas engine onboard that can be utilized to recharge its batteries, allowing for longer travel 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 recently announced its first luxury sedan, the ET7, which will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, actually fallen more than 20 % at highs earlier this season. NIO’s earnings on Monday can help soothe investor anxiety over the stock’s top valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Dropped Yesterday