NIO Stock – Why NIO Stock Felled Thursday
What took place Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is no different. With its fourth-quarter and full year 2020 earnings looming, shares fallen almost as 10 % Thursday and stay downwards 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, but the benefits shouldn’t be scaring investors in the sector. Li Auto reported a surprise profit for the fourth quarter of its, which can bode well for what NIO has to tell you when it reports on Monday, March 1.
But investors are actually knocking back stocks of these high fliers today after lengthy runs brought high valuations.
Li Auto reported a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies provide somewhat different products. Li’s One SUV was created to deliver a certain niche in China. It provides a little gas engine onboard that could be utilized to recharge its batteries, allowing for longer travel 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 benefits, respectively. NIO Stock recently announced its first luxury 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 20 % from highs earlier this year. NIO’s earnings on Monday could help relieve investor stress over the stock’s high valuation. But for today, a correction remains under way.
NIO Stock – Why NIO Stock Felled