Li Auto is expected to nearly double in value next year despite EV industry slump.

From TradingView: 2024-06-01 10:15:02

The S&P 500 and Nasdaq 100 hit record highs in 2024, but some sectors like electric vehicles (EVs) are trading well below their peak. Li Auto, despite the EV industry slump, is expected to nearly double in value next year, standing out with strong delivery performance and cash flow generation.

However, in 2024, EV stocks like LI have crashed, with a YTD loss of nearly 46%. While Li Auto has been a standout in the space for hitting delivery milestones and generating free cash flows, the overall EV industry slowdown has impacted its growth trajectory.

Analysts anticipate a rebound for Li Auto, despite challenges. With a consensus “Strong Buy” rating from 11 analysts, LI’s mean target price is almost double its current level. Despite obstacles like potential tariffs in the E.U., the company remains a compelling growth stock.

Li Auto’s profitability has taken a hit in the short term due to market challenges, but its strong balance sheet and growth outlook make it an attractive investment option. While risks exist in Chinese stocks, Li Auto’s valuation, growth potential, and market positioning make it a viable candidate for long-term growth and profitability.



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