Forbes·2024-08-02 09:00Company Performance - Li Auto delivered 51,000 vehicles in July 2024, marking a 49.4% increase year-over-year, driven by strong demand for the new lower-priced Li L6 model, which sold over 20,000 units [1] - The company has lowered prices for several models, which likely contributed to the increase in overall sales volume [1] - However, growth rates for other models like Li L7, Li L8, and Li L9 may have cooled, potentially impacting average selling prices [1] Stock Performance - Li Auto's stock has declined by 35% from approximately $30 in early January 2021 to around $20 currently, while the S&P 500 has increased by about 45% during the same period [2] - Stock returns for Li Auto were 11% in 2021, -36% in 2022, and 83% in 2023, indicating underperformance compared to the S&P 500 in 2021 and 2022 [3] Market Environment - The Chinese luxury electric vehicle market is showing promise despite global EV market weaknesses, with new incentives introduced for consumers replacing gasoline cars with electric vehicles [4] - Premium vehicles costing over $30,000 are increasingly dominating sales, which may benefit Li Auto as it primarily competes in the premium segment [4] - Li Auto's focus on EVs with gasoline-powered range-extending generators may help differentiate the company in a crowded market [4] Valuation and Growth Projections - Li Auto's stock trades at about $18 per share, approximately 14 times consensus 2024 earnings and 10 times 2025 earnings, which is considered reasonable given projected revenue growth of over 15% this year and over 35% next year [4]