Jul 04, 2024

Li Auto shares surged on Wednesday after reporting more robust deliveries. 

Li-Auto-Weekly-ChartLi Auto – Weekly Chart 

The price of Li Auto ADR has found support at the $18.38 level and resistance at $20.78, which suggests a more significant move. 

Li Auto surged 6.5% on Wednesday after the company reported strong deliveries. The company delivered 47,774 vehicles in June, a nearly 47% year-over-year increase compared to June 2023. The company offered a total of 108,581 cars in the second quarter, up 25.5% on an annual basis. The latest figures point to some recovery in the EV maker. 

After ramping production, the company has seen more robust demand for its new lower-priced Li L6 SUV model, which is aimed at families. The vehicle, priced around RMB 250,000, shipped 20,000 units in June, accounting for almost 40% of total unit sales. The company also lowered prices for several of its models earlier in the quarter, which has helped increase volumes. 

The stock has suffered since its highs in February 2024, with a loss of around 24%. However, if deliveries continue on their current trajectory, they can recover in the weeks ahead. 

One headwind for the company could be reports that Tesla is close to securing a lower duty on the cars it makes in China and ships to Europe. Politico said inspectors visited its operations in Shanghai last week. 

Li also faces domestic competition. A new report on Tuesday said that Chinese EV giant BYD was set to beat Tesla in battery EV sales in 2024. 

“This shift underscores the dynamic nature of the global EV market,” said Counterpoint Research analysts. 

CNBC said BYD’s second-quarter battery EV sales jumped almost 21% year-on-year to 426,039 units. Tesla’s second-quarter deliveries, meanwhile, fell 4.8% to 443,956 vehicles. Last year, BYD’s total production of 3 million cars was higher than that of Tesla’s 1.84 million vehicles for a second straight year.

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