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NIO Stock – Why NIO Stock Dropped Yesterday

NIO Stock – Why NIO Stock Dropped Thursday

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

 Li Auto (NASDAQ: LI) 

So what Fellow Chinese EV developer Li Auto (NASDAQ: LI) noted its fourth quarter earnings nowadays, though the outcomes shouldn’t be frightening investors in the industry. Li Auto reported a surprise profit for its fourth quarter, which can bode well for what NIO has got to say in the event it reports on Monday, March 1.

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

Li Auto reported a surprise positive net income of $16.5 million for its fourth quarter. While NIO competes with LI Auto, the businesses provide slightly different products. Li’s One SUV was designed to offer a specific niche in China. It contains a small gasoline engine onboard which may be utilized 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 benefits, 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, actually fallen more than 20 % from highs earlier this year. NIO’s earnings on Monday might help ease investor nervousness over the stock’s top valuation. But for today, a correction stays under way.

NIO Stock – Why NIO Stock Dropped Thursday

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