Why NIO Stock Dropped Thursday
Many stocks in the electric-vehicle (EV) sector are sinking today, and Chinese EV maker NIO (NYSE: NIO) is no exception. With its fourth-quarter and full-year 2020 earnings looming, shares dropped as much as 10% Thursday and remain down 7.6% as of 2:45 p.m. EST.
Fellow Chinese EV maker Li Auto (NASDAQ: LI) reported its fourth-quarter earnings today, but the results shouldn't be scaring investors in the sector. Li Auto reported a surprise profit for its fourth quarter, which could bode well for what NIO has to say when it reports on Monday, March 1.
But investors are knocking back stocks of these high fliers today after extended runs brought high valuations.
Source Fool.com
