NIO Stock - Why NIO Stock Dropped Thursday
What took place Many stocks in the electric-vehicle (EV) sector are 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 almost as ten % Thursday and stay downwards 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, though the benefits shouldn't be scaring investors in the industry. Li Auto reported a surprise profit for its fourth quarter, which may bode very well for what NIO has got to say when it reports on Monday, March one.
although investors are actually knocking back stocks of those high fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li's One SUV was developed to deliver a certain niche in China. It contains a small gasoline engine onboard that can be harnessed 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 in its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, 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, by now fallen more than twenty % from highs earlier this year. NIO's earnings on Monday might help soothe investor nervousness over the stock's high valuation. But for today, a correction stays under way.
NIO Stock - Why NIO Stock Dropped Yesterday