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