What's Going On With Li Auto Stock?

Li Auto Inc. LI shares are trading lower Monday after Chinese car sales fell in the month of June. 

The Details:

Retail sales of cars fell for the third month in a row, down 6.7% from the prior year to 1.77 million units in June, the China Passenger Car Association said Monday. Retail sales of new-energy cars, which include electric vehicles and plug-in hybrids, rose 28.6% to 856,000 units in June from a year earlier, due to continued high demand for NEVs.

Adding to headwinds facing Li Auto, the European Union last week introduced provisional tariffs of up to 37.6% on China-made EVs to protect against a potential flood of cheaper, subsidized EVs. 

Li Auto shares rose 13% last week after the company said it delivered 47,774 vehicles in June, just below its December record of 50,353 EV deliveries.  

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According to data from Benzinga Pro, Li Auto shares are trading below the stock’s 50-day moving average of $22.05 and near its 52-week low of $17.75.

LI Stock Prediction 2024:

Li Auto’s revenue growth in fiscal year 2023 was 159.1%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. PPI recently came in at -0.2%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.1%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Li Auto stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against Li Auto's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Li Auto operates in the Consumer Discretionary sector. The stock has experienced average annual growth of -14.19% compared to the -35.47% average of its peer companies. This is below the broader sector movement of Li Auto.

LI Price Action: According to Benzinga Pro, Li Auto shares are down 2.05% at $20.04 at the time of publication Monday.

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