Li Auto’s December Deliveries Soar to 6,126 Units; Street Sees 25% Upside

China-based electric vehicle maker Li Auto reported that the deliveries of Li ONE SUV, the company’s only model, jumped about 530% year-over-year to 6,126 units in December 2020. The December deliveries increased 31.9% when compared to November.

Li Auto (LI) commenced volume production of its first model, Li ONE, in November 2019. Overall, the company’s 4Q 2020 deliveries came in at 14,464 units, reflecting 67% quarter-over-quarter growth. The company stated that its 4Q deliveries were 20.5% above the top end of its guidance.

Furthermore, cumulative deliveries of Li ONE crossed the 30,000 milestone (as of December 18, 2020) in just over 12 months since deliveries began in December 2019.

Given the strong demand for Li ONE, the company intends to expand its direct sales and servicing network. As of 2020 end, it had 52 retail stores covering 41 cities and 114 servicing centers in China. (See LI stock analysis on TipRanks)

In November 2020, Citigroup analyst Jeff Chung upgraded Li Auto to Buy from Hold and increased the price target to $45.60 from $27.10. Chung estimates China’s new energy vehicle sector sales could grow over 100% year-over-year into 1Q21. He expects Li Auto’s January 2021 shipments to hit around 6,000 units and his sensitivity analysis suggests that the stock could be worth $111.38.

Shares of Li Auto, which went public in the US in July 2020, are currently trading at $28.83 and the average price target of $35.92 indicates an upside potential of 24.6% in the months ahead. Currently, the stock scores the Street’s Moderate Buy analyst consensus based on 3 Buys and 2 Holds.

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