NIO Stock – Why NIO Stock Felled Thursday
What occurred Many stocks in the electric-vehicle (EV) sector are actually sinking today, and Chinese EV producer NIO (NYSE: NIO) is no different. With its fourth-quarter and full year 2020 earnings looming, shares decreased almost 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, but the outcomes should not be worrying investors in the industry. Li Auto noted a surprise benefit for its fourth quarter, which may bode well for what NIO has got to say when it 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 optimistic net income of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses give slightly different products. Li’s One SUV was created to offer a certain niche in China. It provides a little gas engine onboard which may 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 plus 17,353 in its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO Stock not too long ago announced its very first high end sedan, the ET7, that will also have a new longer-range battery option.
Including present day drop, shares have, according to FintechZoom, by now fallen more than twenty % from your highs earlier this year. NIO’s earnings on Monday could help alleviate investor anxiety over the stock’s top valuation. But for now, a correction continues to be under way.
NIO Stock – Why NYSE: NIO Felled Thursday