NIO Stock – Why NIO Stock Felled
What happened Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually no exception. With its fourth quarter and full year 2020 earnings looming, shares fallen as much as 10 % Thursday and remain downwards 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) reported its fourth quarter earnings today, but the benefits should not be unnerving investors in the sector. Li Auto reported a surprise gain for its fourth quarter, which can bode well for what NIO has got to tell you when it reports on Monday, March 1.
however, investors are knocking back stocks of those top fliers today after lengthy runs brought huge valuations.
Li Auto noted a surprise optimistic net revenue of $16.5 million because of its fourth quarter. While NIO competes with LI Auto, the businesses offer slightly different products. Li’s One SUV was designed to offer a certain niche in China. It contains a small fuel engine onboard that can be utilized to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 vehicles in January 2021 and 17,353 within its fourth quarter. These represented 352 % along with 111 % year-over-year benefits, respectively. NIO Stock just recently announced its very first high end sedan, the ET7, which will also have a new longer-range battery option.
Including today’s drop, shares have, according to FintechZoom, actually fallen more than 20 % from your highs earlier this year. NIO’s earnings on Monday could help alleviate investor stress over the stock’s top valuation. But for today, a correction is still under way.
NIO Stock – Why NIO Stock Felled Thursday