Li Auto Inc. is a Chinese electric car manufacturer. Its headquarters are located in Beijing and its manufacturing facilities are located in Changzhou. It is a company you may want to invest in if you’re considering purchasing an electric car. The company has over 28,000 employees and has been in business for over 25 years.
Despite a recent slump, the company’s stock price is still a bargain compared to other electric car manufacturers. Li Auto is a great buy for investors seeking upside potential, and its prospects for growth are bright. The company plans to launch a full-sized extended-range SUV in 2022 and will likely roll out more extended-range models as well as fully electric vehicles. The company’s forward price-to-sales ratio is lower than its peers, and its recent sales and profitability data should keep shareholders happy.
On the other hand, there are many risks with Li Auto stock. The company has reported disappointing Q2 sales results, and its guidance for Q3 deliveries was also disappointing. Li Auto’s EV sales have fallen significantly since the company first updated its forecast on Aug. 15. This has resulted in the company reducing its Q3 delivery outlook to between 21,000 and 25,000 vehicles.
With the Li ONE SUV’s range-extension technology, Li Auto expects to sell 30,000 to 32,000 vehicles in the fourth quarter. The company is also expected to expand its production capacity. Its Changzhou factory is already at a production capacity of 100,000 vehicles and can be expanded to 200,000 units if required. In addition, the company plans to launch a factory in Beijing in 2023.
If you’re considering buying a Li Auto stock, you’ll want to know its EPS rating. It is important to note that the EPS rating is a composite measure of a stock’s performance based on the most important technical and fundamental criteria. The highest-rated stocks in history often have a Composite Rating of 95 or higher. The Composite Rating is an important indicator, as it compares the stock’s relative performance with other companies in its industry group.
Li Auto stock has made a strong comeback after the lagging market and regulatory fears pushed it lower in mid-March. The Chinese automaker has experienced robust growth in recent quarters and is beginning to show profitability. With strong sales and a rebound in production, the stock looks poised to become a contender in the U.S. electric car market.
The stock’s gross profit margin increased dramatically from 2020 to 2021. Its other sales and services segment increased by 44% year over year in 2021. That’s almost double what it earned from vehicle sales last year. Li Auto management did not specify why the profit margin increased in the other sales and services segment.
In addition to the Li ONE, Li Auto plans to introduce a smart SUV. This new model is expected to help the company accelerate its deliveries growth. As of August 2018, the company had delivered more than 20,000 Li ONEs. In July alone, the company delivered 10,422 cars.