This week, the Li Auto share price will be the focus as the company releases its financial results. On Monday, its American shares traded at $27.56, down almost 18% from the highest point this year and nearly 60% from their lowest level from 2024. The market capitalization of the company has reached almost $30 billion.
Li Auto has grown steadily
Li Auto has grown rapidly in recent years due to the increasing demand in China for electric cars. The company’s revenue has increased from $40.8m in 2019 to $17.4bn last year. This is a surge of 43,400%.
The number of cars delivered each year increased. In 2019, it sold 1,000 cars, but by 2024 had reached a total of 500,000. It is a strong growth considering it only sold 376,000 vehicles.
Li Auto is the only EV company that has a profitable business. In 2023, its annual profit jumped from $1.6 billion to $1.6 Billion.
The analysts are confident that Li Auto continued to grow in the fourth-quarter as deliveries increased. The company’s Q4 delivery figures revealed it had shipped more than 158,600 cars. This represents a 20% increase on an annualized basis. The jump in Q4 was less than the 160,000 to 170,000 vehicles that were expected.
Li Auto is expected to have a revenue of CNY 44.56 Billion or $6.2 billion. This represents a 6.7% increase in annual revenues. The annual revenue will be 145.6 billion Yuan, or about $20 billion. In 2025, it will grow 31% to over $26 billion or 192 billion Yuan.
Li Auto Stock Price Analysis: The Bullish Case for This Nio Rival
Li beats Tesla
Li Auto is performing better than Tesla a company whose shares have plummeted this year. Li Auto makes several different brands, including L9, L8, L7 and Li Mega. The diverse range of brands it offers and the popularity of these products in China are responsible for its better performance.
Li Auto has also higher gross margins than Tesla. This trend may continue, as the company grows in size. Tesla’s gross margin is 17.8%. Its EBITDA margin is 13.3%. And its net income margin, 7.26%.
Li Auto’s gross margin is 21.4%, and its EBITDA margin and net profit margin are 5.8% and 7.15 percent respectively. Li Auto will probably surpass Tesla’s profitability margins as its scale increases.
Tesla is in trouble, and the market expects a significant drop in deliveries for the first quarter. Analysts predict that its American sales will be affected by the impact of Musk’s involvement in DOGE.
Li Auto’s stock is a hot topic among analysts. Analysts expect that the stock price of Li Auto will increase to $32.3 from its current $27.56.
Li Auto Stock Price: Here’s Why this EV Giant is About to Surge
Li Auto Stock Price Analysis
Li Auto Share Price Chart by TradingView
Daily chart of the LI shares shows a significant uptrend over the last few months. The price has increased from $17.8 to $27.56 in the past few months.
As the moving averages of 50 and 200 days crossed, the stock formed a golden-cross pattern. This is one of most bullish patterns on the market.
Li Auto’s stock price formed a cup-and-handle pattern. This is a bullish continuation signal. The stock is likely to have a breakout bullish, and the next level of interest will be $35.60. This represents the Fibonacci Retracement at 61.8%, or about 30% higher than the current price.
First published on The ICD, this post explains why Li Auto’s stock could skyrocket after its earnings.
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