NIO Stock – Why NYSE: NIO Dropped
What happened Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV maker NIO (NYSE: NIO) is no exception. With its fourth-quarter and full year 2020 earnings looming, shares decreased 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 developer Li Auto (NASDAQ: LI) claimed its fourth quarter earnings today, although the benefits should not be unnerving investors in the sector. Li Auto noted a surprise profit for the fourth quarter of its, which may bode well for what NIO has got to tell you when it reports on Monday, March 1.
But investors are actually knocking back stocks of these high fliers today after lengthy runs brought huge valuations.
Li Auto reported a surprise optimistic 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 designed to deliver a certain niche in China. It includes a tiny gas engine onboard which can be harnessed to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 as well as 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year benefits, respectively. NIO Stock just 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 highs earlier this season. NIO’s earnings on Monday might help ease investor anxiety over the stock’s top valuation. But for today, a correction continues to be under way.
NIO Stock – Why NIO Stock Dropped Yesterday