Skip to content

This EV stock is up 80% in 2023 and it’s not Tesla

This EV stock is up 80% in 2023 and it’s not Tesla

In the ever-evolving world of electric vehicles (EVs), 2023 has witnessed a spectacular stock rally by Chinese automaker Li Auto (NASDAQ: LI). 

Emerging as the standout performer among US-listed Chinese EV stocks, alongside XPeng (NYSE: XPEV), Li Auto’s meteoric rise is attributed to a string of robust delivery figures, driving substantial revenue and gross margin growth throughout the year.

As a result, LI gained over 80% year-to-date, soaring from $20.98 on January 1 to $38.59 on September 21, 2023, according to TradingView data.

LI Auto YTD price chart. Source: Google

The stock rose more than 0.5% during the September 20 trading session, though it remains down 3.1% in the past week. 

Li Auto’s stock has found reliable support at approximately $38.3, a level where buying interest typically increases. 

On the upside, LI faces resistance at around $41, representing a price point where selling pressure tends to rise, challenging further upward movement. 

Clearing this barrier would allow the stock to retest the all-time high of $47.33 reached last month.

Why is LI stock surging this year?

As noted earlier, the key catalyst behind Li Auto’s stock market ascent this year is the company’s strong delivery numbers.

Notably, the carmaker delivered 34,914 vehicles in August, representing a staggering 7x increase year-over-year.

This figure is also significantly above Li’s local rivals Nio (NYSE: NIO) and XPeng, which delivered around 19,329 and 13,690 last month, respectively. 

Li has been capitalizing on strong demand for its high-end EVs, which feature both electric drivetrains and a gasoline-powered range extender generator, alleviating range anxiety among customers. 

The company had just one vehicle model on the market until 2022. Since then, it has rolled out three luxurious electric cars, including the full-size crossover SUV Li L9, the mid-size crossover Li L8, and the L7. 

Analysts remain bullish on Li Auto

With impressive deliveries and strong revenue growth, Li Auto attracted positive attention from research and investment firms this year.

According to MarketBeat, the stock has a consensus analyst 12-month price target of $70.42, indicating a potential upside of more than 82% from the current price per share. 

Li Auto consensus analyst rating and price target. Source: MarketBeat

In addition, the consensus analyst rating for LI shares sits at ‘Buy,’ based on 6 buy recommendations. 

Buy stocks now with Interactive Brokers – the most advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

Related posts