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NIO Stock – Why NIO Stock Felled Yesterday

NIO Stock – Why NYSE: NIO Dropped Thursday

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

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV maker Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, though the outcomes shouldn’t be frightening investors in the sector. Li Auto reported a surprise benefit for the fourth quarter of its, which could bode very well for what NIO has got to say if this reports on Monday, March 1.

But investors are knocking back stocks of those high fliers today after extended runs brought high 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 give somewhat different products. Li’s One SUV was created to deliver a specific niche in China. It provides a small gasoline engine onboard that can be harnessed 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 and 17,353 throughout its fourth quarter. These represented 352 % as well as 111 % year-over-year profits, respectively. NIO  Stock just recently announced its very first luxury sedan, the ET7, that will also have a new longer-range battery option.

Including today’s drop, shares have, according to FintechZoom, actually fallen more than twenty % at highs earlier this season. NIO’s earnings on Monday could help alleviate investor anxiety over the stock’s top valuation. But for today, a correction remains under way.

NIO Stock – Why NYSE: NIO Dropped Thursday

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