NIO Stock – Why NIO Stock Dropped

NIO Stock – Why NYSE: NIO Felled

What took place Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV developer NIO (NYSE: NIO) is actually no different. With its fourth-quarter and full year 2020 earnings looming, shares decreased almost as 10 % Thursday and remain lower 7.6 % as of 2:45 p.m. EST.

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) noted its fourth-quarter earnings today, but the results should not 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 point out in the event it reports on Monday, March 1.

But investors are actually knocking back stocks of these top fliers today after extended runs brought huge valuations.

Li Auto reported a surprise optimistic net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses give slightly different products. Li’s One SUV was created to deliver a specific niche in China. It includes a tiny fuel engine onboard which can be used to recharge its batteries, allowing for longer traveling between charging stations.

NIO (NYSE: NIO)

NIO stock delivered 7,225 cars in January 2021 as well as 17,353 in its fourth quarter. These represented 352 % along with 111 % year-over-year benefits, respectively. NIO  Stock recently announced its 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, by now fallen more than 20 % at highs earlier this season. NIO’s earnings on Monday might help soothe investor anxiety over the stock’s of good valuation. But for now, a correction is still under way.

NIO Stock – Why NYSE: NIO Felled

Charles Riley

http://fiil.pro