NIO Stock - Why NIO Stock Dropped Yesterday
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 dropped as much as ten % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, though the results shouldn't be unnerving investors in the industry. Li Auto noted a surprise benefit for its fourth quarter, which could bode very well for what NIO has to tell you if this reports on Monday, March one.
although investors are knocking back stocks of those top fliers today after lengthy runs brought huge valuations.
Li Auto reported a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses provide slightly different products. Li's One SUV was created to deliver a specific niche in China. It includes a tiny gasoline engine onboard which could be harnessed 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 within its fourth quarter. These represented 352 % and 111 % year-over-year benefits, respectively. NIO Stock just recently announced its first luxury sedan, the ET7, that will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, by now fallen more than twenty % at highs earlier this year. NIO's earnings on Monday can help soothe investor nervousness over the stock's of good valuation. But for now, a correction stays under way.
NIO Stock - Why NIO Stock Felled Thursday