Forbes·2024-12-04 10:00Core Viewpoint - Li Auto, a leading player in the Chinese EV market, reported a 19% year-over-year increase in vehicle deliveries for November, totaling 48,740 units, but experienced a 5% decline from October [1]. Delivery Performance - Year-to-date deliveries for Li Auto reached approximately 441,995 units, reflecting a 36% increase compared to the previous year [1]. - In comparison, Nio and Xpeng reported deliveries of 15,493 and 30,895 vehicles in November, representing year-over-year increases of 29% and 54%, respectively [1]. Growth Drivers - The Li L6 model, launched in April and priced around RMB 250,000 (approximately $34,500), likely contributed to the growth in volumes [2]. - Advancements in the autonomous driving system, Li AD Max, and promotional strategies, including a three-year, zero percent interest financing offer, have also supported sales [2]. Stock Performance - Li Auto's stock has seen a year-to-date decline of 37%, with returns of 11% in 2021, -36% in 2022, and 83% in 2023 [3]. - The stock trades at about $24 per share, approximately 1.2 times the consensus 2024 revenues, which are projected to grow over 17% this year and about 30% next year [3]. Competitive Landscape - The Chinese EV market is highly competitive, with over 100 brands, leading to pressure on average selling prices and margins [3]. - Li Auto's average selling price declined by 15% year-over-year to RMB 270,000 (about $37,000) due to a shift in sales mix towards lower-priced models [3]. Product Performance - The MEGA van, Li's first purely electric model priced above $70,000, has not met expectations and is not expected to be a major volume driver [4]. - The reliance on gasoline-powered range extenders has been a key selling point, but as charging infrastructure improves, the importance of delivering popular pure EVs will increase [4].