LI Stock Alert: Why Li Auto Is Revving Up 9% Today

Source: Robert Way /

Shares of Li Auto (NASDAQ:LI) stock are revving up today by about 9%, bringing the Chinese electric vehicle (EV) company’s year-to-date (YTD) return to just over 100%. Earlier this week, China’s National Development and Reform Commission (NDRC) announced a promise to support investments in industries including transportation, clean energy, and infrastructure, sending Chinese stocks higher across the board.

With the support of the Chinese government, Li Auto looks primed to capture a sizable chunk of the country’s EV market. During June, the company reported 32,575 deliveries, up by an impressive 150% year-over-year (YOY). It was also the first time that Li Auto delivered over 30,000 vehicles in a month.

“Benefiting from the comprehensive enhancement of our organizational processes and operating capabilities, our monthly deliveries exceeded 30,000 for the first time, making Li Auto currently the only Chinese premium brand to achieve this milestone,” said CEO and Chairman Xiang Li. “For the third quarter, we target monthly deliveries for Li L8 and Li L9 at over 10,000 each and aspire to achieve 15,000 Li L7 monthly deliveries.”

LI Stock: Li Auto Soars Amid Chinese Rally

In fact, competitor Nio (NYSE:NIO) delivered 10,707 vehicles last month, which means that Li Auto’s deliveries were over 300% higher than that of Nio’s. Another competitor, XPeng (NYSE:XPEV), delivered 8,620 vehicles. During the second quarter, Li Auto’s deliveries totaled 86,533 vehicles, up by 201% YOY. In addition, its first-half deliveries in 2023 have already outpaced its total deliveries in 2022. As of June 30, Li Auto boasted 331 retail stores across 127 cities and 323 servicing centers and paint shops.

For the fourth quarter, Li Auto has an ambitious goal of 40,000 deliveries each month. During then, the company plans on releasing its flagship 5C battery electric vehicle (BEV) model called the Li MEGA, which will carry a luxury price tag of at least 500,000 yuan, or about $70,000.

Meanwhile, a major catalyst for LI stock is on the horizon. The company has confirmed that it will report its second-quarter earnings on Aug. 8 before the market opens. Analysts expect the company to post revenue of $3.669 billion, up by 200% YOY. Adjusted gross profit is expected to grow by 193% to $771 million. What’s more, GAAP EPS is expected to be 12 cents, which would mark the third consecutive quarter of positive EPS.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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