NIO Stock – Why NIO Stock Dropped Thursday

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

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV producer Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, although the outcomes should not be frightening investors in the industry. Li Auto reported a surprise gain for its fourth quarter, which may bode very well for what NIO has got to tell you in the event it reports on Monday, March one.

But investors are actually knocking back stocks of those high fliers today after lengthy runs brought huge 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 companies offer somewhat different products. Li’s One SUV was designed to serve a certain niche in China. It provides a little fuel engine onboard that may be used to recharge its batteries, allowing for longer traveling between charging stations.

NIO (NYSE: NIO)

NIO stock delivered 7,225 vehicles in January 2021 plus 17,353 throughout its fourth quarter. These represented 352 % along with 111 % year-over-year gains, respectively. NIO  Stock just recently announced its very first deluxe sedan, the ET7, which 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 year. NIO’s earnings on Monday might help alleviate investor stress over the stock’s of exceptional valuation. But for today, a correction stays under way.

NIO Stock – Why NIO Stock Dropped Thursday