NIO Stock – Why NYSE: NIO Felled
What occurred Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV developer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares dropped as 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 nowadays, but the benefits should not be worrying investors in the sector. Li Auto noted a surprise gain for the fourth quarter of its, which could bode very well for what NIO has to point out if this reports on Monday, March one.
however, investors are knocking back stocks of those top fliers today after extended runs brought high valuations.
Li Auto noted a surprise positive net revenue of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was designed to serve a specific niche in China. It contains a small fuel engine onboard which may be utilized to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 as well as 17,353 within its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock just recently announced its first deluxe sedan, the ET7, that 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 could help ease investor nervousness over the stock’s of exceptional valuation. But for today, a correction remains under way.
NIO Stock – Why NIO Stock Dropped Yesterday