NIO Stock – Why NIO Stock Felled
What took place Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV developer NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen as much as ten % Thursday and stay lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings nowadays, though the benefits shouldn’t be scaring investors in the sector. Li Auto noted a surprise profit for the fourth quarter of its, which could bode well for what NIO has to say if this reports on Monday, March 1.
But investors are knocking back stocks of these high fliers today after extended runs brought high valuations.
Li Auto reported a surprise positive net income of $16.5 million because of 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 includes a small fuel engine onboard that may be used to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 as well as 17,353 throughout its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO Stock just recently announced its very first luxury sedan, the ET7, which will also have a new longer range battery option.
Including present day drop, shares have, according to FintechZoom, actually fallen more than twenty % at highs earlier this year. NIO’s earnings on Monday can help relieve investor anxiety over the stock’s of exceptional valuation. But for today, a correction is still under way.
NIO Stock – Why NYSE: NIO Dropped