In the heated competition to dominate the global clean energy market, some financial traders might overlook China-based electric vehicle manufacturer Li Auto (NASDAQ:LI). That’s a mistake, however, as LI stock is on an upward trajectory with more potential for upside in 2023.
Overall, Li Auto gets a solid “B” rating, especially for investors who are bullish on the autonomous EV market.
It’s a shame that some traders won’t bother to look beyond their borders for investment opportunities. China is the world’s largest EV market.
Li Auto CEO Xiang Li forecasts that new energy vehicles (NEVs) “will account for more than 80 per cent of all new vehicle sales in China” by December of 2025.
Thus, Li Auto is an ambitious player in a fast-growing industry. Sure, there are risks involved because Li Auto is a startup business in a competitive market. Yet, open-minded investors should at least give Li Auto some consideration.
| LI | Li Auto | $33.80 |
LI Stock Rises From the Ashes
In October of last year, LI stock bottomed out at $14 and change and some investors just bailed. Remember, though, that the entire stock market was under pressure. It felt as if global central banks would never stop tightening their monetary policies.
Now, people who threw in the towel on Li Auto are certainly regretting it. The Li Auto share price recently broke above $30, and the $40 resistance level from last summer could be the next target.
What could propel LI stock to $40 or more? The primary catalyst might be Li Auto’s impressive growth as a company. Li Auto has posted two consecutive profitable quarters, and not every NEV startup can make that claim.
Li Auto delivered 28,277 EVs in May, up 146% year over year.
According to Morgan Stanley analyst Tim Hsiao, “With sufficient order book and growing store footprints, the founder of Li Auto continues to target” 30,000 EV sales in June.
In other words, there are reasons to believe that June should be even better than May for Li Auto.
Li Auto Gets Serious About Autonomous EVs
LI stock might not be right for everyone. If you’re not bullish on the future of autonomous NEVs, then you probably shouldn’t invest in Li Auto.
That’s because, according to a report from TechNode (which cited industry insiders via 36Kr), Li Auto is ramping up its hiring efforts in self-driving NEV technology. Apparently, Li Auto is looking to update/upgrade its intelligent driving software.
Ultimately, Li Auto wants its autonomous vehicles to be able to “navigate on both Chinese highways and busy urban streets.”
That’s an ambitious goal, and only time will tell whether Li Auto’s hiring spree will result in game-changing self-driving NEV technology. At first, Li Auto will undoubtedly have to spend money on research and development. Eventually, however, the company might outpace its peers in a potentially lucrative niche market.
LI Stock Is Worth a Look in 2023
An “A” rating would be too high for Li Auto right now, since not all investors want exposure to the self-driving technology market. Besides, NEV startups are risky as they’re battling each other in a highly competitive industry.
Li Auto’s profitability and EV delivery growth are indisputable. So, feel free to expand your horizons and consider an international clean-energy vehicle investment with LI stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
