NIO Stock – Why NYSE: NIO Felled
What happened Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares dropped almost as ten % 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) claimed its fourth quarter earnings today, however, the outcomes should not be frightening investors in the industry. Li Auto reported a surprise profit for the fourth quarter of its, which could bode well for what NIO has to point out in the event it reports on Monday, March 1.
Though investors are actually knocking back stocks of these high fliers today after extended runs brought huge valuations.
Li Auto noted a surprise optimistic net earnings of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies provide somewhat different products. Li’s One SUV was developed to serve a certain niche in China. It includes a small gasoline engine onboard that can be used to recharge its batteries, 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 % along with 111 % year-over-year benefits, respectively. NIO Stock recently 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, by now fallen more than 20 % from your highs earlier this year. NIO’s earnings on Monday might help relieve investor stress over the stock’s top valuation. But for now, a correction stays under way.
NIO Stock – Why NYSE: NIO Felled Yesterday