NIO Stock – Why NIO Stock Felled Thursday
What took place Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares decreased as much as 10 % Thursday and remain lower 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 outcomes should not be frightening investors in the industry. 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 one.
however, investors are actually knocking back stocks of those high fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise positive net revenue of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was created to offer a certain niche in China. It includes a small gasoline engine onboard which may be used to recharge its batteries, allowing for longer traveling between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 within its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock just recently announced its very 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 twenty % from highs earlier this season. NIO’s earnings on Monday can help soothe investor nervousness over the stock’s high valuation. But for now, a correction is still under way.
NIO Stock – Why NIO Stock Dropped