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Li Xiang One PHEV
Kindness Li Auto Inc.
Read Auto,
like his electric vehicle colleagues
NIO
and
adze,
had a very strong end to the year. China’s electric vehicle sector remains on fire until 2021.
Chinese SUV manufacturer Li ONE delivered 6,126 vehicles in December. It increased from 4,646 in November and increased by about 530% compared to December 2019, according to the company.
It can be a bit difficult to get a consensus delivery number for Li Auto (ticker: LI) and other Chinese electric vehicle manufacturers. Most analysts are based in Asia and it is difficult to reach a consensus. Tesla (TSLA), for example, delivered more than 180,000 vehicles in the fourth quarter, which was better than the approximately 176,000 forecasted analysts.
However, the Li number is very strong, even without a real consensus of the analyst for comparison. The company, at its third-quarter conference call, said it expects to deliver between 11,000 and 12,000 vehicles in the fourth quarter. The company delivered 14,464 in the fourth quarter, easily surpassing its own initial projections.
NIO (NIO) delivered more than 7,000 vehicles in December. Combined with the results of Tesla and Li, it seems that Chinese demand for EVs remains very healthy.
XPeng
(XPEV), the other Chinese US-listed EV manufacturer, has not yet released deliveries since December.
Calling the price of stocks that react even to good news can sometimes be difficult. Li’s stock declined after reporting November deliveries. Li also sold several shares to raise cash during the November delivery period.
EV shares are definitely in a bull market. Tesla grew by about 740% in 2020 and is now the most valuable car company in the world by a wide margin. Li shares closed at $ 28.83 in 2020, up substantially from the July $ 11.50 IPO price.
Earnings are costing Li and the Chinese EV sector as a whole. Barron’s recently wrote that Chinese stocks of electric vehicles were too expensive for us. This article appeared in mid-December, and Chinese electric vehicle stocks, on average, trade in connection with where they were then.
Analysts, for the most part, disagree with Barron’s. Over 60% of analysts evaluate the three Chinese shares of electric vehicles – NIO, Li and XPeng – Buy. Average valuation report Purchase for shares in
Dow Jones Industrial Average
is about 57%.
For Li, he buys about 64% of analysts covering the company’s rate. The average price targeted by the analyst is about $ 37 per share.
Monday should be an interesting day. Investors have to deal with recent Tesla Model Y prices in China. A Y model is priced below a NIO EC6 and rises to the price of a Li ONE.
This may be a concern for investors, but delivery numbers look good.
Write to Al Root at [email protected]