If Detroit automakers like Ford (NYSE:F) are bringing you nothing but anxiety and disappointment, I invite you to take a trip to China. I don’t mean literally, but only in your portfolio’s holdings. China-based electric vehicle manufacturer Li Auto (NASDAQ:LI) is growing is sales rapidly there, and LI stock could zoom higher even if U.S. automaker stocks fall flat.
I’ll admit, not everyone is interested in international investments. I encourage you to expand your geographic horizons. If you’re enthused about the EV industry’s growth, then consider thinking global instead of just local. LI stock could be the secret gem in your portfolio with moonshot potential regardless of the problems in Detroit.
When Ford Flunks, Look to Li Auto
As the age-old saying goes, the market has spoken. Ford stock plummeted 12.25% on Oct. 27, dropping below $10, after the Detroit automaker released its third-quarter financial results.
Due to due to “uncertainty” over the company’s dealings with the United Auto Workers union, Ford did the unthinkable. The company withdrew its full-year 2023 financial results, leaving investors nervous and frustrated. Obviously, since Li Auto is far away from Detroit, it won’t have to deal with UAW-related issues.
In addition, Ford disclosed a massive $1.3 billion loss on sales of its EV known as the Model e. Also during the third quarter, Ford earned 30 cents per share, widely missing Wall Street’s call for 46 cents per share.
You can sidestep all of those problems and concerns by choosing LI stock over Ford stock. In stark contrast to Ford’s lackluster performance, Li Auto reported a jaw-dropping 212.7% year-over-year increase in September 2023 vehicle deliveries. Furthermore, Li Auto’s second-quarter 2023 EV deliveries soared 296.3% on a year-over-year basis.
LI Stock Traders: Mark This Crucial Date on Your Calendar
InvestorPlace contributor Dana Blankenhorn says that Detroit is “toast.” Maybe you agree and are ready to buy LI stock. Or, maybe you’re still on the fence – but either way, there’s a critical date that you’ll definitely want to mark on your calendar.
Here’s the scoop. Li Auto is set to release its third-quarter results on Nov. 9 before the U.S. stock market opens. So, do you plan to invest in Li Auto before that date, or after?
Remember, EV demand in China is heavy and Li Auto delivered excellent results in the second quarter. Looking ahead, Wall Street expects Li Auto to report EPS of 35 cents for the third quarter.
Li Auto earned 35 cents per share in the second quarter, so there’s no reason why the company can’t repeat and beat that feat in Q3. September was an amazing month for Li Auto, as I already explained.
It’s hard to imagine that the company won’t knock it out of the park in its upcoming quarterly report. Why not get on board before the results come out instead of watching, waiting and soon regretting your failure to act?
Think Outside the Box With LI Stock
Ford’s EV sales might not be up to par, but that’s not Li Auto’s problem to deal with. So, if you’d like to sidestep Detroit’s challenges and take a chance on China, I encourage you to take a look at Li Auto.
While you’re at it, be sure to mark Nov. 9 on your calendar as that’s a big day for Li Auto. Outside-the-box investors can buy a few LI stock shares before that date and hold on for what could be an interesting and profitable ride.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
