NIO Stock - Why NYSE: NIO Dropped
What took place Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV developer NIO (NYSE: NIO) is no different. With its fourth-quarter and full year 2020 earnings looming, shares fallen almost as 10 % Thursday and stay lower 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 today, although the benefits shouldn't be frightening investors in the sector. Li Auto noted a surprise gain for the fourth quarter of its, which may bode very well for what NIO has got to say in the event it reports on Monday, March 1.
although investors are knocking back stocks of those high fliers today after extended runs brought huge valuations.
Li Auto noted a surprise optimistic net income 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 developed to deliver a specific niche in China. It includes a tiny gas engine onboard which could be harnessed to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 and 17,353 in its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO Stock not too long ago announced its very first deluxe sedan, the ET7, that will also have a new longer range battery option.
Including today's drop, shares have, according to FintechZoom, by now fallen more than twenty % from 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 continues to be under way.
NIO Stock - Why NIO Stock Dropped Yesterday