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U.S. stock futures were higher this morning, with the Dow futures gaining around 150 points on Friday.
Chinese plug-in hybrid specialist Li Auto reported lower net profit for the fourth quarter despite record revenue as a brutal price war hurt its bottom line.
The EV maker's soft guidance will have done nothing to reassure investors.
Quarterly total revenues reached RMB44.3 billion (US$6.1 billion)1 Quarterly deliveries reached 158,696 vehiclesFull year total revenues reached RMB144.5 billion (US$19.8 billion)Full year deliveries were 500,508 vehicles
Li Auto stock price will be in the spotlight this week as the company publishes its financial results. Its American shares were trading at $27.56 on Monday, down by almost 18% from its highest level this year, and by nearly 60% from its lowest level in 2024.
Li Auto and NIO are two Chinese EV players that are on my radar for 2025. For the near-term, I favor Li Auto over NIO, considering Li Auto's more attractive pricing and NIO's higher risk from European tariffs. Li Auto is a more established name in terms of scale and profitability, and NIO continues to fight an uphill battle to expand globally and solve its high cash burn.
The Tesla stock price has imploded this year, making it one of the worst-performing companies in the Nasdaq 100 indices. TSLA has dropped in the last five consecutive weeks and is hovering near its lowest level since November 4.
NIO, XPeng and Li Auto February deliveries rise 62.2%, 570% and 29.7%, respectively, year over year.
Li Auto's delivery results for February disappointed as the company only delivered 26,263 electric vehicles, 12% less than in the previous month. Seasonal effects are responsible for the drop-off in deliveries, which should normalize again in March. I maintain a strong buy rating for Li Auto due to its profitability, competitive price-to-revenue ratio, and superior vehicle margins compared to NIO and XPeng.
After enjoying strong rallies in the final week of February, two prominent Chinese electric vehicle (EV) makers experienced sharp and unexpected stock market drops on March 3.