Jim Cramer Rejects Li Auto (LI) After Multiple Earnings Misses
From Yahoo Finance: 2025-04-10 08:19:00
Jim Cramer called the market decline “man-made,” citing leadership decisions as the cause. He rejected the idea of a global financial collapse, highlighting the strength of US institutions. Cramer warned that the administration’s tariffs could lead to a recession and reverse decades of globalization by forcing companies to return manufacturing to the US.
Cramer outlined the challenges the administration faces in successfully reshaping the global economy through tariffs. He emphasized the need to avoid inflation spikes, negotiate trade deals quickly, and prevent a rise in unemployment. If successful, Cramer believed the administration would declare victory and roll back tariffs, preventing a market collapse.
During a recent episode of Mad Money, Jim Cramer discussed 15 stocks, including Li Auto Inc. (NASDAQ:LI). Despite a recent decline in stock price, Cramer dismissed Li Auto due to multiple earnings misses. The company, a Chinese electric vehicle manufacturer, focuses on extended-range EVs combining battery power with internal combustion for longer driving distance. Chinese new energy vehicle company Li Auto faces tough competition from domestic rivals like Nio and BYD. Despite potential, AI stocks may offer higher returns in a shorter timeframe. Consider exploring alternative AI stock options for potential investment opportunities. Check out our report for more information.
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