Electric vehicle maker Li Auto (NAS100:LI) releases earnings this week with the stock hovering below recent highs.
The price of LI is trading at $28.91 and the resistance ahead is the 2024 high at $41.08. Just above that level we have the 2025 high around $33. These are the key obstacles for the current bullish activity.
Li Auto is releasing its first quarter results on Thursday after the stock has jumped by more than 50% from its 2025 lows.
Analysts expect the latest results to show that Li Auto’s revenue dropped slightly in the first quarter to CNY 25 billion, with earnings per share expected to fall from CNY 1.21 to CNY 0.64. Li Auto is then expected to continue its growth trajectory, with analysts expecting annual revenue at the firm to be CNY 169 billion, up by 17.2% from last year.
Recent reports showed that deliveries are still growing, with 33,939 vehicles dispatched in April, up by 31% from the same period last year. The figure is also above the March deliveries of 36,674.
Analysts are majorly bullish on the Li Auto stock price, with an average target of $33.77, up from the current $28.9. With Tesla floundering across the globe, positive earnings results could see further investment interest flowing to Li stock. A breach of the $133 resistance level could get up to $150 if the general market remains positive.
Research firm Rho Motion predicts that China’s subsidies and the new EU emissions targets will see global EV and plug-in hybrid sales to increase by more than 17% in 2025, reaching 20 million units.
“In the US market, a lot of uncertainty has obviously hit the market in the last year or so, and we are expecting reduced EV forecasts, However, the shift to electric vehicles is still very much happening, and we will still see growth over the next decade,” a Rho report said.
