NIO Stock – Why NYSE: NIO Felled Yesterday
What took place Many stocks in the electric vehicle (EV) sector are actually sinking these days, 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 ten % Thursday and stay downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) noted its fourth quarter earnings today, although the outcomes should not be worrying investors in the sector. 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 1.
But investors are actually knocking back stocks of those top fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise optimistic net income 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 offer a specific niche in China. It contains a tiny gasoline engine onboard that could be harnessed to recharge its batteries, allowing for longer travel 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 % along with 111 % year-over-year gains, respectively. NIO Stock recently announced its very first luxury sedan, the ET7, which will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, actually fallen more than 20 % at highs earlier this season. NIO’s earnings on Monday might help relieve investor nervousness over the stock’s of exceptional valuation. But for today, a correction remains under way.
NIO Stock – Why NYSE: NIO Felled Thursday