With the recent Ukraine-Russia war threatening the world’s supply of petroleum and other crude oils, the market has begun looking toward alternatives that can help bridge the gap that is needed for everyday travel. While some governments have been looking to beef up their own public transportation systems to compensate, the private market sees only one clear answer to this conundrum: Electric Vehicles.
While western affirms such as giant Tesla and newcomer Polestar are often on the minds of most investors, Li Auto comes to challenge the thought that Asian carmakers are limited to Toyota, Nissan, and Mitsubishi. With electric vehicles being ever more popular in today’s market, Li Auto’s specialization in EV manufacturing puts it in a rare incidence of the right place at the right time.
Quantitative Analysis: New Player Up on Gains
As we’ve mentioned, Li Auto is still a relative newcomer to the market and has grown from its start in 2015 as an electric vehicle manufacturer headquartered in Beijing. Since then, it has made waves with its electric vehicles powered by more common range extender technologies, allowing it slightly more compatibility with other fuel systems in the market.
In 2020, after a $1 billion valuation IPO, Li Auto had listed itself on the NASDAQ with ticker LI. As of writing, their stock is currently priced at $28.82, up 36% from its introductory price of $16.
Qualitative Analysis: Recency Leaves Much to Chance
Despite the hot market for electric vehicles as showcased by the likes of Tesla Motors, there remains some caution that must be had for any company that had only recently been introduced in the market. Outlooks might be favourable but plenty of this will be up to chance on whether or not Li Autos can deliver.
Final Thoughts
While there remains much to be seen with the future of Li Auto once more vehicles get introduced to wider markets, there is a good chance that Li Auto will gain a bit more in the coming months. This change in price will be highly dependent on their earnings call, slated for August 8, 2022. Until then, those with an appetite for risk are welcome to scoop up this young company while those looking for something more secure ought to look elsewhere.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only