NIO Stock – Why NYSE: NIO Felled
What happened Many stocks in the electric-vehicle (EV) sector are actually sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen 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 producer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, though the results should not be scaring investors in the industry. Li Auto noted a surprise profit for the fourth quarter of its, which could bode very well for what NIO has got to point out in the event it reports on Monday, March one.
however, investors are knocking back stocks of those high fliers today after extended runs brought high valuations.
Li Auto reported a surprise positive net revenue 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 provides a tiny 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 vehicles in January 2021 as well as 17,353 within its fourth quarter. These represented 352 % and 111 % year-over-year gains, respectively. NIO Stock not too long ago announced its first luxury sedan, the ET7, that will also have a new longer range battery option.
Including today’s drop, shares have, according to FintechZoom, actually fallen more than 20 % from highs earlier this year. NIO’s earnings on Monday can help ease investor stress over the stock’s high valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped Thursday