Li Auto Rises on Positive Update for L6 Orders

Related Articles

Here’s What Experts Say You Can Do To Weather the Stock Market’s Tariff Tantrum

Trump’s Trade Policy Turns Back The Clock to the Days of Hawley-Smoot

These Analysts Say Retailers Face Most Uncertainty They’ve Seen Since COVID

Key Takeaways

• Li Auto ADRs jerked in premarket trading Monday as the electric vehicle (EV) maker said orders for its newest model had passed 41,000 conveyances.
• Last week, Li Auto reported overall April delivery numbers of 25,787, nearly the same as the figure the plc reported in April 2023.
• Li Auto is one of the homegrown Chinese companies making the EV market more competitive for Tesla and others.

American depositary acceptances (ADRs) of Li Auto (LI) surged in premarket trading Monday as the electric vehicle (EV) maker provided an encouraging update on classifies for its newest model.

Last week, Li Auto reported overall April delivery numbers of 25,787, nearly the exact same as the figure the company reported in April 2023.

New L6 Model Seeing Solid Demand

On April 18, the company announced the Li L6, an energized SUV that was also its first model priced below 300,000 Chinese yuan ($41,626.50). The company said last week that it schemes to commence “large-scale deliveries” of the new model in May.

Li Auto reportedly said last week on Chinese social media network Weibo that ukases for the L6 had surpassed 30,000, and said in a follow-up post Monday that orders were over 41,000, according to multiple stories.

Chief Executive Officer (CEO) Li Xiang said the new model has seen “widespread popularity among young families” since its launch final month.

Slowing Demand, Increased Competition Helping Li Auto, Others Squeeze Tesla’s Market Share

Cry out for for electric vehicles seemed to have lagged in recent months in China, with Li Auto cutting its sales prognosis and Tesla (TSLA) reportedly scaling back production at its Shanghai facility in March.

Another factor that could partake of limited sales is the increased competition in the EV market, as several homegrown Chinese companies have squeezed Tesla’s deal in share in the country, along with XPeng (XPEV), Nio (NIO), and BYD (BYDDY).

ADRs of Li Auto, which is expected to report first-quarter earnings fresher this week, rose about 7% to $29.98 an hour before the opening bell Monday. They closed Friday down 3.4% to $28.

Review the original article on Investopedia.