Li Auto Posts Electrifying March Deliveries

Chinese electric vehicle manufacturer Li Auto (NASDAQ: LI) has provided an April 1 delivery update for March 2022. The company recorded strong deliveries despite the shortage of certain auto parts, which resulted from the resurgence of COVID-19 cases in the Yangtze Delta region.

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Following the update, shares of the EV maker rose 5.54% on Friday to close at $27.24.

March Deliveries

Li Auto delivered over 11,000 Li ONEs last month, representing 125.2% year-over-year and 31.1% sequential growth. Remarkably, deliveries in the first quarter of 2022 stood at 31,716, up 152.1% year-over-year.

Since the entry of the company into the vehicle market in 2019, total deliveries came in at 155,804. By the end of last month, the company had 217 retail spaces in 102 cities, along with almost 300 service locations, and Li Auto-authorized repair shops in 211 cities.

Official Comments

In response to the strong data, Li Auto President Yanan Shen said, “We will unveil our world-class flagship smart SUV L9 for family users on April 16…We continue to take measures to ensure supply and safeguard production, aiming to shorten the waiting time of delivery to our users.”

Peers

Looking at Li Auto’s peers, XPeng (XPEV) delivered 15,414 vehicles in March and recorded a year-over-year increase of 202%, while NIO’s (NIO) March deliveries came in at 9,985, up 37.6%.

Wall Street’s Take

Recently, China Renaissance Securities analyst Yiming Wang initiated coverage of Li Auto with a Buy rating and a price target of $37.20 (36.56% upside potential).

Wang commented that the prospective Chinese electric vehicle automakers are “embracing a new stage of rapid growth after being undervalued” in 2019 and 2020.

Consensus among analysts is a Strong Buy based on five unanimous Buys. The average Li Auto price target of $39.80 implies 46.11% upside potential from current levels. Shares have gained 9.22% over the past year.

Hedge Fund Activity

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Li is currently Very Positive, as the cumulative change in holdings across all 4 hedge funds that were active in the last quarter was an increase of 7.5 million shares.

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