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NIO Stock – Why NIO Stock Felled Yesterday

NIO Stock – Why NIO Stock Dropped

What occurred Many stocks in the electric vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is no exception. With its fourth quarter and full year 2020 earnings looming, shares dropped pretty much as ten % Thursday and stay downwards 7.6 % as of 2:45 p.m. EST.

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) claimed its fourth quarter earnings nowadays, however, the outcomes shouldn’t be frightening investors in the sector. Li Auto noted a surprise benefit for the fourth quarter of its, which can bode very well for what NIO has to say when it reports on Monday, March one.

although investors are actually knocking back stocks of those high fliers today after extended runs brought high valuations.

Li Auto noted a surprise positive net revenue 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 designed to deliver a specific niche in China. It contains a small fuel engine onboard which can be used to recharge its batteries, allowing for longer travel between charging stations.

NIO (NYSE: NIO)

NIO stock delivered 7,225 cars in January 2021 plus 17,353 in its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO  Stock not too long ago 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 20 % from highs earlier this year. NIO’s earnings on Monday could help alleviate investor nervousness over the stock’s top valuation. But for today, a correction stays under way.

NIO Stock – Why NIO Stock Dropped

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