NIO Stock – Why NIO Stock Felled Yesterday
What happened Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV developer NIO (NYSE: NIO) is actually no exception. With its fourth-quarter and full year 2020 earnings looming, shares fallen as much as ten % 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, however, the results should not be worrying investors in the industry. Li Auto noted a surprise profit for its fourth quarter, which could bode very well for what NIO has to say in the event it reports on Monday, March one.
Though investors are actually knocking back stocks of these high fliers today after lengthy runs brought huge 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 give somewhat different products. Li’s One SUV was developed to offer a specific niche in China. It provides a small gasoline engine onboard that could be harnessed to recharge the batteries of its, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 throughout its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO Stock not too long ago 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, already fallen more than twenty % from highs earlier this season. NIO’s earnings on Monday can help relieve investor anxiety over the stock’s high valuation. But for today, a correction stays under way.
NIO Stock – Why NYSE: NIO Felled Thursday