NIO Stock – Why NIO Stock Felled
What happened Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV producer NIO (NYSE: NIO) is no different. With its fourth quarter and full year 2020 earnings looming, shares dropped as much as 10 % Thursday and remain down 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings nowadays, although the outcomes shouldn’t be worrying investors in the sector. Li Auto reported a surprise benefit for its fourth quarter, which may bode well for what NIO has got to tell you if this 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 businesses provide somewhat different products. Li’s One SUV was designed to serve a certain niche in China. It contains a small fuel engine onboard which may be harnessed to recharge the batteries of its, allowing for longer traveling 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 gains, respectively. NIO Stock just recently announced its first high end sedan, the ET7, that will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than 20 % from highs earlier this year. NIO’s earnings on Monday could help soothe investor anxiety over the stock’s of good valuation. But for now, a correction is still under way.
NIO Stock – Why NYSE: NIO Felled Thursday