10 Best Chinese Stocks to Buy Right Now

4. Li Auto (NASDAQ:LI)

Hedge Funds Holding Stakes: 17

Stock Upside Potential: 90.24%

Li Auto (NASDAQ:LI) is one of the best Chinese stocks to buy now to gain access to the country’s electric vehicle market. It designs, develops, manufactures, and sells premium smart electric vehicles (EVs).  Li Auto distinguishes itself from its rivals through its effective market launch of extended-range electric vehicles (EREVs) in China. These vehicles merge the advantages of electric propulsion with the extended mileage achievable through an internal combustion engine.

Over the last year, Li Auto Inc. (NASDAQ:LI) has steadily increased its sales amid the strong demand for electric vehicles, especially in China.  Its total deliveries in the first quarter were up 52.9% to 80,400 vehicles, leading to vehicle sales of $3.4 billion, representing a 32.3% year-over-year increase

In July, it achieved a new monthly record with 51,000 deliveries, marking a 49.4% increase from the same period last year. This suggests that the introduction of new subsidies might have played a role in boosting Li’s sales.

Li Auto Inc. (NASDAQ:LI) is set to experience significant growth in 2024, mainly due to its lofty sales goal. The firm plans to hit the mark by delivering 800,000 vehicles this year, a notable jump from the 376,030 units it sold in 2023.

The introduction of new models bolsters this objective. Moreover, Li Auto’s emphasis on autonomous driving technology and innovative vehicle solutions is anticipated to propel further expansion and strengthen its position in the market. The company is expecting to launch level 3 self-driving technology by 2025. While tariffs in the EU and U.S. have impacted Chinese EV companies, Li Auto Inc. (NASDAQ:LI) focuses on China, with potential expansion into the Middle East and Southeast Asia in the next 24 months.

Li Auto Inc. (NASDAQ:LI)’s stock is currently trading at a price-to-earnings (P/E) ratio of 12.7, which is relatively low compared to its peers, affirming undervaluation. The average price target for Li Auto’s stock is $40.08, representing a forecasted upside of 90.24% from the current price.

According to the Insider Monkey database, 17 hedge funds held stakes in Li Auto Inc. (NASDAQ:LI) as of the end of Q2 2024. Jim Simons’ Renaissance Technologies is the most significant shareholder of the company with stakes worth $129.69 million