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NIO Stock – Why NIO Stock Dropped

NIO Stock – Why NIO Stock Dropped Thursday

What happened Many stocks in the electric vehicle (EV) sector are sinking these days, and Chinese EV maker NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full-year 2020 earnings looming, shares fallen almost as ten % Thursday and stay lower 7.6 % as of 2:45 p.m. EST.

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) noted its fourth quarter earnings today, but the outcomes should not be unnerving investors in the sector. Li Auto noted a surprise gain for its fourth quarter, which may bode well for what NIO has got to say when it reports on Monday, March 1.

Though investors are knocking back stocks of those top fliers today after lengthy 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 companies offer somewhat different products. Li’s One SUV was designed to deliver a specific niche in China. It includes a little gasoline engine onboard that may 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 as well as 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO  Stock just recently announced its first deluxe sedan, the ET7, that will also have a new longer range battery option.

Including today’s drop, shares have, according to FintechZoom, already fallen more than twenty % at highs earlier this year. NIO’s earnings on Monday can help soothe investor anxiety over the stock’s of good valuation. But for today, a correction remains under way.

NIO Stock – Why NIO Stock Dropped Thursday

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