
Give the Company Credit: Morgan Stanley Optimistic About Li Auto’s Record Numbers
By Michael Elkins
Morgan Stanley has maintained an Overweight rating and a $23.00 price target on Li Auto following the Chinese electric vehicle manufacturer’s record-breaking sales in December. The company reported 21,233 units sold in December, marking a 41% increase month-over-month and a 51% increase year-over-year. This strong December performance brought Li Auto’s fourth-quarter deliveries to 46,319 units, aligning with the company’s guidance of 45,000 to 48,000 units.
Both the L8 and L9 models surpassed 10,000 units in deliveries during December, despite facing supply challenges. Analysts at Morgan Stanley noted that investors may appreciate the company’s effectiveness in achieving the founder’s target of RMB 10 billion in monthly revenue by the end of the year.
At the recent Guangzhou Auto Show, Li Auto announced the official launch of the L7, a five-seater SUV, scheduled for February 8, with test drives available in Li Auto retail stores nationwide starting February 9. The company is expecting its Extended-range Electric Vehicle (EREV) lineup to be a significant growth driver in 2023.
As a result of this positive news, shares of Li Auto increased by 6.13% in pre-market trading on Tuesday.