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NIO Stock – Why NIO Stock Dropped Yesterday

NIO Stock – Why NYSE: NIO Felled Yesterday

What occurred Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV developer 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 lower 7.6 % as of 2:45 p.m. EST.

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) claimed its fourth quarter earnings today, but the benefits shouldn’t be unnerving investors in the sector. Li Auto noted a surprise benefit for its fourth quarter, which can bode well for what NIO has to say in the event it reports on Monday, March one.

But investors are actually knocking back stocks of those high fliers today after extended runs brought high valuations.

Li Auto noted a surprise optimistic net income 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 developed to offer a certain niche in China. It provides a tiny fuel engine onboard which could be utilized to recharge the batteries of its, allowing for longer traveling between charging stations.

NIO (NYSE: NIO)

NIO stock delivered 7,225 cars in January 2021 and 17,353 throughout its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO  Stock not too long ago announced its very first high end 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 your highs earlier this season. NIO’s earnings on Monday can help ease investor nervousness over the stock’s top valuation. But for today, a correction remains under way.

NIO Stock – Why NYSE: NIO Felled Yesterday

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