The Li Auto Inc (NASDAQ: LI) stock price barely moved during premarket trading despite the EV manufacturer announcing that it had delivered 20,823 vehicles in March, bringing its total for the year's first quarter to 52,584 vehicles. The Q1 figures represent a 66% improvement from the Q1 2022 deliveries.Â
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Still, investors barely reacted to the news as investor sentiment towards EV companies remanded subdued. Furthermore, Li Auto’s figures pale compared to industry leader BYD, which sold 264,647 purely battery-powered passenger cars in the first three months of 2022, marking an improvement from Q1 2022.Â
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The muted reaction extended to Tesla, which reportedly delivered 422,000 EVs in Q1 2023, far outpacing all its competitors and cementing its position as the global industry leader. However, Tesla did not reveal the number of cars it sold in China during the period since it is no longer the sales leader in the country.
Li Auto’s vehicles, all SUVs, have an advantage over its peers since they each come with a fuel tank to charge the battery and extend driving range. Still, investors’ attention was not on the EV industry today, as evidenced by the lack of movement across most EV stocks.
So the question remains, where exactly are investors focused? The answer may surprise you. Investors are focused on the oil production cuts announced by OPEC+ late on Sunday, which triggered a rally in crude oil prices. Many are trying to determine what higher oil prices mean for the global economy.
Most analysts and investors are focused on deciphering how central banks and governments will react to the surging oil prices. Most leading central banks, including the Fed, ECB, and BoE, have limited room to keep hiking rates to combat inflation.
Higher crude oil prices are likely to trigger higher inflation undoing the efforts of most central banks that were finally bearing fruit as inflation levels in most countries receded. It will take some time for the key players to fully digest and react to the lower global oil production and higher prices.
*This is not investment advice.
Li Auto stock price.
The Li Auto stock price was trading up 0.48% at $25.07, from Friday’s closing price of $24.95.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.