Li Auto Inc. (LI) shares are on the rise today, driven by the company’s achievement of a major milestone: 900,000 cumulative deliveries. This remarkable feat was reached just 56 months after Li Auto delivered its first vehicle, according to CnEV Post.
Li Auto is now the first Chinese new car manufacturer to reach this significant milestone, demonstrating its impressive growth trajectory. The company’s recent performance has been particularly strong, with CnEVPost reporting that Li Auto delivered an estimated 26,655 vehicles in August, bringing its total deliveries through July to 873,345.
Despite this positive news, LI stock has experienced a decline of over 47% in the past year. Investors can gain exposure to Li Auto through ETFs like the VanEck Low Carbon Energy ETF (SMOG) and Carbon Collective Climate Solutions U.S. Equity ETF (CCSO).
Li Auto’s success comes amidst a challenging period for the Chinese EV industry. Competitor XPeng Inc (NYSE: XPEV) recently reported a 60.2% year-on-year increase in second-quarter sales, reaching 8.11 billion Chinese Yuan ($1.12 billion). However, this figure fell short of analyst expectations of 8.21 billion Chinese Yuan ($1.13 billion).
The Chinese EV sector has faced headwinds from weak domestic demand and protectionist tariffs from the European Union. However, the industry has received a boost from China’s plan to increase its stimulus program to incentivize passenger vehicle purchases.
Li Auto’s achievement of 900,000 deliveries signifies its strength and resilience in a dynamic and competitive market. As the Chinese EV market continues to evolve, Li Auto’s performance will be closely watched by investors and industry observers alike.
As of Wednesday’s close, LI shares were trading 3.69% higher at $21.06.
