NIO Stock – Why NIO Stock Dropped Yesterday

NIO Stock – Why NIO Stock Felled Yesterday

What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares dropped as much as 10 % Thursday and remain down 7.6 % as of 2:45 p.m. EST.

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, though the results should not be unnerving investors in the industry. Li Auto noted a surprise gain for its fourth quarter, which can bode very well for what NIO has to say if this reports on Monday, March one.

however, investors are actually knocking back stocks of these high fliers today after extended runs brought huge valuations.

Li Auto noted a surprise optimistic net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses offer somewhat different products. Li’s One SUV was developed to serve a specific niche in China. It contains a small gasoline engine onboard which can be utilized to recharge its batteries, allowing for longer traveling 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 % and 111 % year-over-year profits, respectively. NIO  Stock recently announced its very first high end sedan, the ET7, which will also have a new longer range battery option.

Including present day drop, shares have, according to FintechZoom, by now fallen more than 20 % from your highs earlier this year. NIO’s earnings on Monday might help soothe investor stress over the stock’s of good valuation. But for today, a correction remains under way.

NIO Stock – Why NIO Stock Felled

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