NIO Stock – Why NYSE: NIO Dropped Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full year 2020 earnings looming, shares decreased almost as ten % 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) reported its fourth-quarter earnings nowadays, although the results should not be unnerving investors in the sector. Li Auto noted a surprise gain for the fourth quarter of its, which can bode well for what NIO has to point out when it reports on Monday, March 1.
however, investors are knocking back stocks of those top fliers today after extended runs brought high valuations.
Li Auto noted a surprise optimistic net revenue of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses offer somewhat different products. Li’s One SUV was designed to deliver a certain niche in China. It contains a tiny gasoline engine onboard that can be harnessed to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 plus 17,353 throughout its fourth quarter. These represented 352 % and 111 % year-over-year gains, respectively. NIO Stock not too long ago announced its very 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 20 % at highs earlier this year. NIO’s earnings on Monday might help relieve investor stress over the stock’s of exceptional valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Dropped Yesterday