Li Auto Inc. will release its earnings ahead of the US market open on Monday.
LI – Daily Chart
LI has found some recent support and pushed above the $31.50 level. If analysts like what they hear, some downtrend resistance ahead will be the first target before $40.
Chinese automakers are also eyeing an entry into European markets as they counter a slowdown at home. Europe’s automakers and their stretched suppliers face a challenging year as they race to cut costs to beat their leaner Chinese rivals. The big question is how much Europe can squeeze out of suppliers that have already started laying off workers.
Li’s Chinese rival Xpeng has a positive outlook on the market, with plans to add 4,000 staff and invest millions in artificial intelligence technology. CEO He Xiaopeng told employees in a letter:
“Facing the pessimistic macroeconomic situation, many business partners are drawing back and afraid to invest. I think this is an opportunity for our development. In 2024, we will buck the trend and enter a high-speed positive cycle in the fourth quarter or earlier”.
Insider ownership is a positive for Li, with executives owning $10bn of the $33bn share valuation. CEO Xiang Li is the largest investor and is bullish on the firm. Deutsche Bank recently upgraded its shares despite a slowing EV market.
Li Auto’s January delivery numbers showed sales more than doubling to 31,165 for the month. CEO Li predicted 2024 will be a year of “unprecedented” growth as the company grows its stable of models to four extended-range electric vehicles and four pure battery-electric vehicles.
