NIO Stock – Why NYSE: NIO Felled
What happened Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full-year 2020 earnings looming, shares decreased almost as ten % Thursday and stay lower 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 results should not be scaring investors in the industry. Li Auto noted a surprise gain for the fourth quarter of its, which could bode well for what NIO has got to tell you in the event it reports on Monday, March one.
But investors are knocking back stocks of these high fliers today after extended runs brought high valuations.
Li Auto reported a surprise optimistic net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies give somewhat different products. Li’s One SUV was designed to offer a certain niche in China. It provides a little gasoline engine onboard that may be utilized 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 % as well as 111 % year-over-year profits, respectively. NIO Stock not too long ago announced its very first luxury sedan, the ET7, that will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, already fallen more than twenty % from your highs earlier this year. NIO’s earnings on Monday can help ease investor nervousness over the stock’s top valuation. But for now, a correction stays under way.
NIO Stock – Why NYSE: NIO Dropped Yesterday