NIO Stock – Why NYSE: NIO Felled
What occurred Many stocks in the electric vehicle (EV) sector are actually sinking these days, and Chinese EV maker NIO (NYSE: NIO) is no exception. With its fourth-quarter and full-year 2020 earnings looming, shares fallen as much as 10 % Thursday and stay lower 7.6 % as of 2:45 p.m. EST.
Li Auto (NASDAQ: LI)
So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) noted its fourth-quarter earnings today, however, the benefits shouldn’t be worrying investors in the sector. Li Auto noted a surprise benefit for the fourth quarter of its, which can bode well for what NIO has got to tell you when it reports on Monday, March 1.
Though investors are knocking back stocks of these top fliers today after extended runs brought huge valuations.
Li Auto noted a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies provide slightly different products. Li’s One SUV was created to offer a certain niche in China. It includes a little fuel engine onboard which could be harnessed to recharge its batteries, allowing for longer travel between charging stations.
NIO (NYSE: NIO)
NIO stock delivered 7,225 cars in January 2021 and 17,353 in its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO Stock recently 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 twenty % from your highs earlier this season. NIO’s earnings on Monday can help alleviate investor stress over the stock’s top valuation. But for now, a correction remains under way.
NIO Stock – Why NIO Stock Felled Thursday