NIO Stock - Why NYSE: NIO Felled Yesterday
What happened Many stocks in the electric vehicle (EV) sector are actually sinking today, and Chinese EV maker NIO (NYSE: NIO) is no different. With its fourth quarter and full-year 2020 earnings looming, shares dropped pretty much as 10 % 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, although the benefits should not be scaring investors in the sector. Li Auto reported a surprise profit for the fourth quarter of its, which may bode well for what NIO has to say when it reports on Monday, March one.
however, investors are knocking back stocks of these high fliers today after extended runs brought huge valuations.
Li Auto noted a surprise positive net revenue of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li's One SUV was designed to deliver a certain niche in China. It provides a small gas 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 % as well as 111 % year-over-year gains, 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, by now fallen more than twenty % at highs earlier this year. NIO's earnings on Monday could help ease investor nervousness over the stock's top valuation. But for now, a correction remains under way.
NIO Stock - Why NYSE: NIO Felled Thursday