Shares of Chinese electric vehicle (EV) maker Li Auto Inc. (LI) soared by 7.4% in pre-market trading on Tuesday, driven by mounting investor optimism surrounding the booming EV market in China and the company's strong positioning to capitalize on this growth opportunity.

The surge comes on the heels of robust sales data from the China Association of Automobile Manufacturers (CAAM), which revealed that the country's new energy vehicle sales reached a record high of 1.29 million units in September, marking a 42.3% year-over-year increase. This impressive performance was fueled by robust consumer demand and supportive government policies, setting the stage for continued growth in the EV industry.

As one of the leading EV manufacturers in China, Li Auto is well-positioned to benefit from this burgeoning market. With its expanding product lineup, including popular models like the L6 SUV, and strong brand recognition, the company is poised to capture a significant portion of the growing demand for EVs in China. Furthermore, Li Auto's robust financial indicators, including a 16% return on equity (ROE) and an impressive 81% net income growth over the past five years, underscore its potential for future growth and efficient utilization of capital.