Li Auto recently reported impressive delivery numbers for March 2025, with a 26% year-over-year increase, and delivered over 92,000 vehicles in the first quarter. These strong performance metrics likely contributed to the company's 5% share price increase over the last quarter, particularly in a market weighed down by tariff concerns impacting wider indices like the S&P 500. Although the company's net income saw a decrease in their latest earnings report, the market's trending volatility and the performance of tech stocks like Tesla might have influenced investor sentiment favorably towards electric vehicle producers like Li Auto amidst broader economic uncertainties.

Buy, Hold or Sell Li Auto? View our complete analysis and fair value estimate and you decide.

Explore 21 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

Over the last three years, Li Auto experienced a total shareholder return of 12.07% decline, reflecting market challenges and competitive pressures within the electric vehicle sector. During this period, Li Auto's earnings showcased mixed results, with notable advancements in vehicle deliveries, yet a significant dip in net income, such as the earnings report from Q4 2024 showing a decline from CNY 5.66 billion to CNY 3.52 billion. Additionally, the inclusion of Li Auto in indices like the Hang Seng Index in 2023 and product launches, such as the Li L6 SUV in April 2024, marked key developments that influenced investor interest.

The company's strategies to bolster its presence in the New Energy Vehicle market, including extensive investments in autonomous driving technology and infrastructure, faced challenges from intensifying competition and declining average selling prices. Compounding these issues was a securities class action lawsuit filed against the company in June 2024, highlighting complexities that could have weighed on market perception and returns. Furthermore, Li Auto underperformed relative to the US Auto industry, which had a 34.1% return over the past year, illustrating difficulties against industry standards.

Upon reviewing our latest valuation report, Li Auto's share price might be too pessimistic.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:LI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com