NIO Stock – Why NYSE: NIO Dropped Thursday
What took place Many stocks in the electric-vehicle (EV) sector are 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 10 % 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) noted its fourth quarter earnings today, although the benefits should not be frightening investors in the industry. Li Auto reported a surprise benefit for its fourth quarter, which may bode well for what NIO has to say in the event it reports on Monday, March 1.
Though investors are actually knocking back stocks of those top fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise positive net earnings 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 developed to serve a certain niche in China. It provides a small fuel engine onboard which could 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 and 17,353 throughout its fourth quarter. These represented 352 % and 111 % year-over-year benefits, respectively. NIO Stock recently announced its very first luxury sedan, the ET7, which will also have a new longer range battery option.
Including today’s drop, shares have, according to FintechZoom, already fallen more than 20 % from your highs earlier this season. NIO’s earnings on Monday can help soothe investor nervousness over the stock’s top valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Dropped