NIO Stock – Why NIO Stock Dropped Thursday
What happened Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares decreased almost as 10 % Thursday and remain 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, however, the benefits shouldn’t be scaring investors in the industry. Li Auto noted a surprise profit for its fourth quarter, which could bode very well for what NIO has got to point out if this reports on Monday, March 1.
But investors are actually knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise optimistic net revenue of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses provide somewhat different products. Li’s One SUV was developed to offer a specific niche in China. It provides a small gasoline engine onboard which can be utilized to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 in its fourth quarter. These represented 352 % as well as 111 % year-over-year benefits, respectively. NIO Stock recently announced its very first deluxe sedan, the ET7, that will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than 20 % from your highs earlier this season. NIO’s earnings on Monday might help ease investor stress over the stock’s high valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Dropped