© Reuters.
BEIJING – Li Auto (NASDAQ:) Inc. (NASDAQ:LI; HKEX:2015), a prominent player in China’s new energy vehicle (NEV) sector, has reported a significant year-over-year increase of 105.8% in its January 2024 vehicle deliveries, totaling 31,165 vehicles. This surge has propelled the company’s cumulative deliveries to 664,529 as of January’s end.
On Monday, Xiang Li, the chairman and CEO of Li Auto, highlighted the company’s success with its three SUV models in the previous year, which led to Li Auto becoming the best-selling brand in the SUV category for vehicles priced over RMB 300,000. Additionally, Li Auto topped the NEV market in China for vehicles within the same price range.
The company is gearing up for an ambitious year with plans to expand its portfolio to eight models, including four extended-range electric vehicles (EREVs) and four battery electric vehicles (BEVs). The expansion is set to satisfy the growing demands of the family user market, with new model launches beginning in March. The launches include the high-tech flagship family MPV, Li MEGA, and the 2024 iterations of Li L7, Li L8, and Li L9.
Li Auto is also intensifying its investment in research and development, particularly in autonomous driving, smart space, and smart electrification technologies. Alongside product development, the company is upgrading its sales and service network, aiming to establish 800 retail stores and over 500 Li Auto-authorized body and paint shops by the end of 2024.
In line with its ambitious delivery target of 800,000 vehicles for the year, the company is working towards becoming the best-selling premium auto brand in China. Li Auto also announced that over 330 super charging stations would be operational and free of charge for Li Auto users during the Chinese New Year holiday, from February 9 to February 17, to facilitate convenient travel for its customers.
As of January 31, 2024, Li Auto operates 474 retail stores across 142 cities and maintains 360 servicing centers and authorized body and paint shops in 209 cities.
This report is based on a press release statement from Li Auto Inc . The company’s forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected.
InvestingPro Insights
As Li Auto Inc. (NASDAQ:LI; HKEX:2015) continues to make strides in China’s competitive NEV sector, recent performance metrics from InvestingPro offer additional insights for investors. The company’s stock has maintained a relatively stable price with a 1 Month Price Total Return of 0.4% and a 1 Year Price Total Return also at 0.4%, indicating consistent investor confidence. Moreover, Li Auto’s stock is trading close to its 52-week high, at 99.7% of this peak value, which may suggest market optimism about the company’s growth trajectory and future prospects.
InvestingPro Tips for Li Auto shed light on some areas of consideration. The stock’s RSI suggests it is in overbought territory, which could be of interest to investors monitoring market sentiment and looking for potential price corrections. Additionally, the company’s weak gross profit margins and the implication of a poor free cash flow yield from its valuation are critical factors for investors to weigh against the company’s expansion plans and increasing delivery numbers.
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