Li Auto (LI) Gains on Strong March Deliveries, Despite Covid Limitations

Key points:
 Li Auto delivered a total of 31,716 vehicles, including 11,034 Li ONE SUV’S 
 Despite solid growth, the company couldn’t operate at full capacity due to Covid limitations 
 The Company’s L9 SUV is expected to hit the market on April 16th 

EV investors have pivoted towards China lately, making the most of US-listed Chinese stocks as a route towards a one-step-ahead EV landscape. While US manufacturers are somewhat hinged to a widespread lack of new energy infrastructure, and that vehicle owners are still some way away from the ubiquitous EV vision of China, the ability to buy into a piece of the booming sector has seen a particular focus on companies like Li Auto (NASDAQ: LI) and its US-listed competitors Xpeng and Nio.

March was a promising month for Chinese EV stocks, with deliveries remaining strong across the board. Li Auto announced a rebound of deliveries in February, but in March resurging Covid cases resulted in a slight hit to production.

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Over March, the popular manufacturer delivered 11,034 Li ONE SUVs, a 31% rise from February. Overall, Li delivered 31,716 vehicles, which results in a 152.1% year-on-year rise. Despite the company’s evident monthly growth, the company wasn’t able to operate at maximum capacity due to a shortage of certain parts resulting from resurging Covid-19 cases in the Yangtze Delta region; the location of the Li Auto factory.

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This month, Li will announce the release of its next hotly-anticipated vehicle in order to combat tightening competition, the L9 SUV, expected to hit the market on April 16th. On another note, sentiment toward Chinese stocks is positive after a report that Beijing will allow U.S auditors full access to over 200 Chinese companies listed on US exchanges; easing delisting fears that weighed on a large number of Chinese stocks. LI shares are currently trading at a solid gain of 8% following today’s delivery update.