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NIO Stock – Why NIO Stock Dropped Yesterday

NIO Stock – Why NIO Stock Dropped Thursday

What took place Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV producer NIO (NYSE: NIO) is actually 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 developer Li Auto (NASDAQ: LI) claimed its fourth-quarter earnings today, though the benefits should not be scaring investors in the sector. Li Auto reported a surprise gain for the fourth quarter of its, which may bode well for what NIO has to tell you when it reports on Monday, March one.

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

Li Auto reported a surprise positive net earnings of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the companies offer slightly different products. Li’s One SUV was designed to offer a specific niche in China. It provides a tiny gas engine onboard that may be used to recharge the batteries of its, allowing for longer traveling between charging stations.

NIO (NYSE: NIO)

NIO stock delivered 7,225 cars in January 2021 plus 17,353 throughout its fourth quarter. These represented 352 % and 111 % year-over-year profits, respectively. NIO  Stock recently announced its very first deluxe 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 twenty % at highs earlier this year. NIO’s earnings on Monday might help soothe investor stress over the stock’s high valuation. But for today, a correction remains under way.

NIO Stock – Why NIO Stock Dropped Thursday

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