NIO Stock - Why NIO Stock Dropped
What happened Many stocks in the electric-vehicle (EV) sector are sinking these days, and Chinese EV developer NIO (NYSE: NIO) is no exception. With its fourth-quarter and full year 2020 earnings looming, shares fallen as much as 10 % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) noted its fourth-quarter earnings nowadays, but the results shouldn't be frightening investors in the industry. Li Auto reported a surprise benefit for the fourth quarter of its, which may bode well for what NIO has got to say if this reports on Monday, March one.
But investors are actually knocking back stocks of these top fliers today after lengthy runs brought high valuations.
Li Auto noted a surprise positive net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies give somewhat different products. Li's One SUV was created to serve a certain niche in China. It contains a small gas engine onboard that can be used to recharge the batteries of its, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 in its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO Stock recently announced its very first high end sedan, the ET7, which will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than twenty % at highs earlier this year. NIO's earnings on Monday can help soothe investor stress over the stock's top valuation. But for now, a correction remains under way.
NIO Stock - Why NYSE: NIO Dropped