Why Li Auto Stock Dropped 14% Today

At less than 5 times trailing free cash flow, Li Auto stock looks like a buy.Three months ago, Chinese electric-vehicle (EV) company Li Auto (LI -14.66%) announced powerful fourth-quarter earnings, but with a caveat: Management warned that a sales slump was coming in the 2024 first quarter.Now it's time for that first-quarter report, and the news is not good. Earnings came in at just $0.17 per share, half of what Wall Street expected. Quarterly sales of$3.55 billion similarly missed consensus targets of $3 ...