NIO Stock – Why NYSE: NIO Felled Yesterday
What occurred Many stocks in the electric vehicle (EV) sector are sinking these days, 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 ten % 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 nowadays, though the outcomes shouldn’t be scaring investors in the sector. Li Auto noted a surprise profit for the fourth quarter of its, which can bode very well for what NIO has to point out if this reports on Monday, March 1.
But investors are actually knocking back stocks of those high fliers today after extended runs brought high valuations.
Li Auto reported a surprise positive net earnings of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the companies give slightly different products. Li’s One SUV was developed to offer a specific niche in China. It includes a small fuel engine onboard that could be harnessed 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 plus 17,353 within its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO Stock recently announced its first luxury sedan, the ET7, that will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, already fallen more than 20 % from highs earlier this season. NIO’s earnings on Monday might help alleviate investor nervousness over the stock’s high valuation. But for now, a correction stays under way.
NIO Stock – Why NYSE: NIO Dropped Thursday