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The Li Xiang One PHEV
Courtesy of Li Auto Inc.
Read Auto,
like their electric vehicle mates
NIO
i
Tesla,
it had a very strong end to the year. The Chinese electricity sector remains on fire until 2021.
Chinese SU ONE manufacturer Li ONE delivered 6,126 vehicles in December. This went from 4,646 in November and increased by about 530% compared to December 2019, according to the company.
It can be a bit difficult to get a consensual delivery number for Li Auto (ticker: LI) and other Chinese electric vehicle producers. Most analysts are based in Asia and it is difficult to add a consensus. Tesla (TSLA), for example, delivered more than 180,000 vehicles in the fourth quarter, which was better than the projected approximately 176,000 analysts.
However, Li’s number is very strong, even without a real consensus of analysts for comparison. The company, in its third-quarter conference call, said it expected to deliver between 11,000 and 12,000 vehicles in the fourth quarter. The company ended up delivering 14,464 in the fourth quarter, easily surpassing its own initial projections.
NIO (NIO) delivered more than 7,000 vehicles in December. Combined with the results of Tesla and Li, it seems that the demand for Chinese electric vehicles remains very healthy.
XPeng
(XPEV), the other Chinese producer of Chinese electric vehicles, has yet to release deliveries in December.
Sometimes calling the stock price to react even to good news can be difficult. Li’s shares fell after reporting November deliveries. It also sold him more shares to raise cash during the time the November deliveries were announced.
Stocks of electric vehicles are definitely in a bullish market. Tesla grew by around 740% in 2020 and is now the most valuable car company in the world by a wide margin. Li’s shares closed at $ 28.83 in 2020, a substantial increase over their $ 11.50 IPO
The gains make Li and the Chinese electricity sector in general expensive. De Barron recently wrote that Chinese electric vehicle stocks were too expensive for us. This article appeared in mid-December, and Chinese electric vehicle stocks, on average, traded where they did then.
Analysts, for the most part, disagree De Barron. More than 60% of analysts value the three shares of Chinese electric vehicles: NIO, Li and XPeng. The average share purchase rating ratio at
Dow Jones industrial average
it is approximately 57%.
For Li, he buys about 64% of the analysts who cover the company’s share. The average target price of analysts is about $ 37 per share.
Monday should be an interesting day. Investors have to deal with recent Tesla Model Y prices in China. A Y model is priced lower than a NIO EC6 and approaches the price of a Li ONE.
This could be a concern for investors, but the delivery numbers look good.
Write to Al Root at [email protected]