Separately, there are concerns that China’s second-largest real estate developer, the struggling Evergrande group, could default on its debt. Moreover, last week, China’s minister for industry and information technology said that the country has “too many” EV players, and this is stoking fears that the EV space could see more interference from the Chinese state going forward. This implies that September deliveries would stand at roughly 6,500 units - a decline of about 30% versus August. Firstly, Li cut its guidance for the current quarter, noting that it expects to deliver about 24,500 vehicles, down from its previous guidance of 25,500 to 26,000 vehicles, due to the shortage of certain semiconductor components. There are a couple of factors that drove the sell-off. Li Auto (NASDAQ: LI) stock declined by almost 7.5% in Monday’s trading and remains down by 9.5% over the last week. Li Auto Stock Hit By Chip Shortage And Evergrande Crisis, But It May Be Time To Buy
Investing in Electric Vehicle Component Supplier Stocks can be a good alternative to play the growth in the EV market. A change of 25% or more over twenty-one trading days has a 10% event probability, which has occurred 49 times out of 497 in the last two years.Įlectric vehicles are the future of transportation, but picking the right EV stocks can be tricky.
Li Auto stock rose 25% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which rose by 4.7%. Secondly, the broader EV space has also gained, driven by positive news from EV bellwether Tesla, which posted a solid set of Q3 2021 earnings and won a 100,000 vehicle order from rental car major Hertz. For example, Li Auto grew its deliveries by 190% year-over-year in Q3 to about 25,116 vehicles, while Mercedes Benz saw global retail sales drop by almost 30% over the same period. Firstly, Li Auto and other Chinese EV players have scaled up their deliveries nicely despite the ongoing chip shortage, likely enabling them to gain market share at the expense of rivals, particularly in the domestic market where they drive a bulk of sales. While Li Auto stock faced some pressure in September due to the Evergrande debt crisis in China and concerns over rising bond yields, it has recovered sharply through October driven by a couple of factors. The stock also remains up by a solid 25% over the last month (about 21 trading days). Li Auto stock (NASDAQ: LI) rose by almost 4.6% over the last week, compared to the broader S&P 500 which remained roughly flat over the same period. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images also known as Li Xiang, logo is seen on an Android mobile device with the word cancelled on a computer screen. CHINA - 4: In this photo illustration the Chinese electric vehicle manufacturer Li Auto.
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