NIO Stock – Why NYSE: NIO Felled
What happened Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares decreased almost as 10 % Thursday and stay downwards 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, but the benefits shouldn’t be frightening investors in the industry. Li Auto reported a surprise profit for its fourth quarter, which can bode well for what NIO has to say when it reports on Monday, March one.
however, investors are knocking back stocks of those top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer somewhat different products. Li’s One SUV was created to serve a specific niche in China. It includes a little gasoline engine onboard that can be utilized to recharge the batteries of its, 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 % and 111 % year-over-year benefits, respectively. NIO Stock not too long ago announced its very first deluxe sedan, the ET7, which will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, already fallen more than twenty % at 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 continues to be under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday