NIO Stock – Why NIO Stock Felled Thursday
What took place 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 fallen as much as ten % Thursday and remain downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, although the outcomes shouldn’t be frightening investors in the industry. Li Auto noted a surprise gain for its fourth quarter, which could bode very well for what NIO has got to point out when it reports on Monday, March 1.
But investors are knocking back stocks of these high fliers today after extended runs brought high valuations.
Li Auto noted a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses give slightly different products. Li’s One SUV was developed to deliver a specific niche in China. It contains a little gasoline engine onboard which can be used 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 within its fourth quarter. These represented 352 % and 111 % year-over-year benefits, respectively. NIO Stock recently announced its very first deluxe 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 can help alleviate investor anxiety over the stock’s high valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Thursday