Li Auto reported strong year-over-year vehicle delivery growth in February but sales decreased month-over-month.

From Nasdaq: 2025-03-05 23:07:35

Li Auto reported a 30% year-over-year increase in vehicle deliveries for February, totaling 26,263 cars. However, sales declined by 12% month-over-month. Rival Xpeng outperformed Li, delivering 30,453 vehicles, up over 6.5x from last year. Nio also saw growth with 13,863 vehicle deliveries, a 62% increase from the previous year.

The sluggish sales growth for Li Auto can be attributed to year-end promotions pulling forward demand, leading to softer sales in January and February. Competition in the Chinese EV market is intense, with over 100 brands vying for market share. Li Auto’s reliance on gasoline-powered range extenders may be losing its advantage as charging infrastructure improves.

Li Auto stock, priced at around $27 per share, trades at 17x consensus 2025 earnings, making it an attractive valuation compared to U.S. rival Tesla. The company’s revenue is projected to grow by 30% in 2025. The launch of more pure EV models, like the Li i8 SUV, could boost investor confidence and drive the stock price higher, potentially reaching $54 per share.

Despite recent performance, the Trefis High Quality Portfolio has provided better returns with less risk than the S&P 500 index over the last four years. With uncertainties in the macroeconomic environment, including rate cuts and geopolitical tensions, the performance of Nio and other Chinese EV stocks remains uncertain. Investors are advised to closely monitor market trends and company developments.



Read more at Nasdaq: What’s Happening With Li Auto Stock?