NIO Stock – Why NIO Stock Felled Yesterday
What happened 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 pretty much as ten % 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 nowadays, although the outcomes should not be frightening investors in the industry. Li Auto reported a surprise profit for its fourth quarter, which may bode well for what NIO has to tell you in the event it reports on Monday, March 1.
But investors are knocking back stocks of these high fliers today after lengthy runs brought huge valuations.
Li Auto reported a surprise optimistic net revenue of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses give slightly different products. Li’s One SUV was developed to offer a specific niche in China. It contains a tiny gas engine onboard which can be used to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 as well as 17,353 within its fourth quarter. These represented 352 % and 111 % year-over-year gains, respectively. NIO Stock recently announced its first deluxe sedan, the ET7, which will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, already fallen more than 20 % at highs earlier this year. NIO’s earnings on Monday can help relieve investor anxiety over the stock’s of good valuation. But for now, a correction stays under way.
NIO Stock – Why NIO Stock Felled Thursday