NIO Stock – Why NYSE: NIO Felled Yesterday
What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares dropped as 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 producer Li Auto (NASDAQ: LI) noted its fourth quarter earnings today, although the benefits shouldn’t be scaring investors in the sector. Li Auto noted a surprise benefit for its fourth quarter, which may bode very well for what NIO has to say if this reports on Monday, March one.
But investors are actually knocking back stocks of those high fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net revenue of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was designed to deliver a specific niche in China. It includes a tiny gas engine onboard that could be utilized to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 in its fourth quarter. These represented 352 % along with 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, actually fallen more than twenty % from your highs earlier this season. NIO’s earnings on Monday could help alleviate investor anxiety over the stock’s high valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Dropped Yesterday