Li Auto delivered 58,513 vehicles in December 2024, up 16.2% year-over-year, facing competition challenges.

From Nasdaq: 2025-01-05 21:15:17

Li Auto, the leading EV player in China, delivered 58,513 vehicles in December 2024, marking a 16.2% year-over-year increase. Despite reaching a milestone of over half a million deliveries for the year, Li’s growth rate lags behind Nio and Xpeng. Li attributes some of its growth to the affordable Li L6 model and advancements in autonomous driving technology. The company also introduced financing incentives to compete in the market.

While Li Auto stock has shown modest growth, the Trefis High Quality Portfolio outperformed the S&P 500 index over the past four years. Li stock currently trades at around $24 per share, valued at 1.2x consensus 2024 revenues. The company faces challenges such as intense competition in the Chinese EV market, impacting average selling prices and margins. Additionally, the shift towards lower-priced models has affected Li’s sales mix.

In terms of returns, Li Auto stock has seen a 36% decline since the start of 2024, contrasting with the S&P 500’s 23% increase. The Trefis Reinforced Value Portfolio has shown 16% growth during the same period. Despite facing headwinds in the market, Li Auto’s revenue is expected to grow by 18% in 2024 and 33% in 2025, positioning it for potential future success in the competitive EV industry.



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