NIO Stock – Why NIO Stock Felled Yesterday

NIO Stock – Why NYSE: NIO Dropped Thursday

What took place Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV developer NIO (NYSE: NIO) is no different. With its fourth-quarter and full-year 2020 earnings looming, shares fallen as much as 10 % Thursday and stay down 7.6 % as of 2:45 p.m. EST.

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, but the results shouldn’t be frightening investors in the industry. Li Auto noted a surprise profit for its fourth quarter, which could bode very well for what NIO has got to point out in the event it reports on Monday, March one.

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 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 certain niche in China. It includes a small fuel engine onboard that could be used 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 in its fourth quarter. These represented 352 % along with 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, actually fallen more than twenty % from highs earlier this year. NIO’s earnings on Monday can help soothe investor anxiety over the stock’s of exceptional valuation. But for today, a correction continues to be under way.

NIO Stock – Why NYSE: NIO Dropped Thursday