Categories
Markets

NIO Stock – Why NIO Stock Dropped

NIO Stock – Why NYSE: NIO Dropped Thursday

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

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings today, however, the results should not be worrying investors in the sector. Li Auto reported a surprise benefit for its fourth quarter, which could bode very well for what NIO has to point out in the event it reports on Monday, March 1.

however, investors are actually knocking back stocks of these top fliers today after lengthy runs brought high valuations.

Li Auto reported a surprise optimistic net income 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 created to offer a certain niche in China. It includes a tiny fuel engine onboard that may be used 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 plus 17,353 in its fourth quarter. These represented 352 % as well as 111 % year-over-year gains, respectively. NIO  Stock recently announced its first high end sedan, the ET7, that will also have a new longer range battery option.

Including present day drop, shares have, according to FintechZoom, by now fallen more than 20 % from highs earlier this season. NIO’s earnings on Monday could help alleviate investor anxiety over the stock’s of good valuation. But for today, a correction continues to be under way.

NIO Stock – Why NYSE: NIO Dropped Thursday

Leave a Reply

Your email address will not be published. Required fields are marked *