The Rollercoaster Ride of Li Auto
Investors witnessed a tumultuous premarket for Li Auto Inc (NASDAQ: LI) as shares tanked on Thursday due to diminishing electric vehicle (EV) deliveries in China.
Bernstein attributed the recent stock plummet to weaker-than-expected order intake for MEGA, Li Auto’s premier MPV model, exacerbating fears of a waning demand outlook.
Despite facing a rollercoaster of stock performance, analyst Eunice Lee retained an Outperform rating for Li Auto with an unchanged price target of $52.50.
Following a robust Q4 earnings report and optimistic 2024 guidance, the stock surged by approximately 30%, only to reverse course and decline by 20% in recent days.
Lee, however, viewed this downturn as a lucrative opportunity for investors, labeling it as an “attractive buying opportunity” amidst the market turmoil.
With the order book for MEGA shrouded in uncertainty, market speculations point to a mere 4,000 non-refundable orders after five days since launch, falling short of expectations.
Although Li Auto management indicated a target of 5,000 monthly deliveries and internal sources hinted at an even higher goal of 8,000 units, Lee forecasted actual delivery figures to hover between 2,000 and 3,000 units per month.
Amid these developments, Li Auto’s stock price reflected the market jitters, closing Thursday’s session with a 4.3% decline to $36.24.
As investors navigate the uncertain terrain ahead, the future trajectory of Li Auto remains shrouded in speculation, raising questions about the sustainability of its growth momentum.
