Founded in 2006, Li Auto is a Chinese electric vehicle manufacturer with its headquarters in Beijing, China, and manufacturing facilities in Changzhou, China. The company’s focus is on producing a single, highly differentiated model, and it is currently the market leader in the EV market in China.
EPS Rating
Amongst the myriad Chinese EV stocks, Li Auto (LI) stands out. The company has a well-developed business model and a flurry of product announcements coming down the pike. It has also nabbed some of the best sales numbers in the EV space. In fact, it accounted for 2.7% of China’s passenger new energy vehicle market.
Li Auto isn’t a rocket scientist, but it has enough brains to boast a solid EPS (earnings per share) figure of -$0.64 per share, which is not bad for a company of its size. The company is also quite savvy when it comes to product design, manufacturing, and distribution. The company’s newest offering, the Li-One, is a six-seater premium plug-in electric SUV that is currently in production. In fact, the company plans to start deliveries of the full-size model by the third quarter of 2022.
Technical analysis gauge
Using a technical analysis gauge for Li auto stock is a good way to get an idea of what is happening in the market. There are several factors that can affect the price of a stock, including liquidity, financial leverage, and a company’s overall health. If the right information is available, you can take a more informed decision about whether to buy or sell.
There are numerous indicators, but the best ones are the ones you can actually use. For example, you should consider the beta of a stock to get a sense of how volatile it is relative to the rest of the market.
The financial industry is built around defining future growth potential and valuation accurately. A technical analysis model is a good way to determine if prices will eventually revert to their historical averages.
Fundamentals
Investing in Li Auto stock requires an analysis of fundamentals. The company aims to expand its product line of smart electric SUVs. Its current model is the Li ONE, which features an advanced range extension system.
The company aims to provide cost-effective mobility solutions for families. It employs 11,901 full-time workers in China. The company’s products are sold through subsidiaries in the United States and China. It also sells peripheral products.
In August, Li Auto delivered 4,571 electric vehicles. These results were lower than the previous quarter’s numbers. A slowdown in delivery growth in the future will affect the company’s revenue ramp-up.
Li Auto also plans to introduce a scaled-down version of its new L8 sport utility vehicle in November. The company has received more than 50,000 orders for the L9, which will start production in November. It is expected that deliveries will increase as the company launches new products.
EV market leader in China
EV market leader Li Auto has reported an uptick in EV deliveries in July. It delivered 10,422 vehicles during the month, a 21% increase over last year. In addition, its second model will go into mass production this month.
Li Auto, which holds 49% of the company, has been working through a number of challenges that have been inherent to the Chinese EV industry. These include supply chain disruptions and Covid-19 lockdowns. However, the company is expected to benefit from the recent recovery in the China EV market.
In the first half of this year, domestic manufacturers accounted for almost 80% of EV sales in China. SAIC-GM was the second largest EV player in the country, with a 16.3% market share. In the next five years, the company will invest $4.5 billion in the electric vehicle business.
Focus on a single, highly differentiated model
Founded in 2015, Li Auto is a Chinese start-up aiming to be a contender in the fast-growing Chinese EV market. The company is also a pioneer in EREVs (electric, range-extended, and battery-electric vehicles) and pairs a variety of different vehicle body types with various energy sources.
Li’s flagship car, the Li L9 SUV, is a six-seater with a 1,100km to 1,315km range. This is the first of many models to come as the company expands its product portfolio.
Li is also planning on launching a full-size, extended-range SUV in 2022. The company is also building a facility in Beijing that can be expanded to 200,000 units. It is expected to be operational by 2023.
The Li L9’s range-extension technology has garnered some attention from consumers. It should help mitigate some of the regulatory risks that may accompany future EVs. The same goes for its autonomous driving system.