NIO Stock – Why NYSE: NIO Felled
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 dropped almost as 10 % Thursday and remain lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings nowadays, though the outcomes shouldn’t be unnerving investors in the industry. Li Auto reported a surprise benefit for the fourth quarter of its, which could bode well for what NIO has to tell you in the event it reports on Monday, March one.
however, investors are knocking back stocks of those high fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses give somewhat different products. Li’s One SUV was developed to offer a certain niche in China. It contains a small fuel engine onboard that may 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 plus 17,353 in its fourth quarter. These represented 352 % along with 111 % year-over-year gains, 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, actually fallen more than twenty % from highs earlier this year. NIO’s earnings on Monday might help ease investor stress over the stock’s of exceptional valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Dropped