Chinese EV major Li Auto (NASDAQ:LI) fell in pre-market trading after the company reported its delivery numbers for February. The company delivered 20,251 vehicles in February, up by 21.8% year-over-year but a 35% decline from January. The cumulative deliveries of the company’s vehicles reached 684,780 as of the end of February.
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Management noted that excluding the Chinese Lunar New Year holiday period, its vehicle deliveries in February continued to tick higher. Li launched the Li MEGA, its first all-electric multi-purpose vehicle (MPV) today, and expects this vehicle to become its top-seller among cars priced above RMB500,000.
Li also plans to equip its 2024 Li L7, Li L8, and Li L9 models with more features and enhanced functions. As a result, it expects March vehicle deliveries to hit 50,000 vehicles.
However, trouble could be brewing for Chinese EV companies, including Li, NIO (NIO), and XPeng (XPEV), in the U.S. markets as the U.S. Government has opened an investigation into whether Chinese vehicle imports pose national security risks due to “connected” car technology. The White House has raised concerns over data collection and surveillance of U.S. infrastructure through these vehicles’ cameras and sensors.
What Is the Forecast for LI Stock?
Analysts remain bullish about LI stock with a Strong Buy consensus rating based on 10 Buys. Over the past year, LI has gained more than 80%, and the average LI price target of $55.31 implies an upside potential of 20.5% at current levels.
