11 Best EV Stocks To Buy For The Long Term

6. Li Auto Inc. (NASDAQ:LI)

Average Analyst Price Target Upside as of September 11: 39.24%

Number of Hedge Fund Holders: 17

Li Auto Inc. (NASDAQ:LI) is a well-known name in China’s new energy vehicle sector. The company specializes in designing, developing, and manufacturing premium smart EVs. It is recognized for its pioneering role in the commercialization of extended-range electric vehicles in China while also advancing its EV platforms.

Since beginning volume production in late 2019, the company has expanded its lineup to include high-tech models such as the Li MEGA MPV and a range of flagship SUVs, including the Li L9, Li L8, and Li L7.

The company is also improving its charging infrastructure and currently has nearly 750 supercharging stations with over 3,500 charging stalls, which cover over 70% of China’s major economic zones and key highways.

It has partnered with China National Petroleum Corporation (CNPC) to further boost its network and plans to add over 2,000 charging stations and 10,000 charging columns at CNPC locations. By the end of 2024, this expansion will enable the company to extend its charging network coverage to over 90% in major city centers and more than 70% along national routes.

Li Auto (NASDAQ:LI) has been covered by 42 analysts with a consensus Buy rating and a median price target of $27.26. The median price target implies an upside of 39.24%, as of September 11.

On August 28, TipRanks reported that Eunice Lee from Bernstein reaffirmed a Buy rating on the stock with a $33 price target. Lee’s positive stance is supported by the company’s recent financial results, which showed revenue growth both year-over-year and quarter-over-quarter.

The company achieved significant sales volume increases, maintained a solid gross margin despite a drop in average selling price due to a new lower-priced model, and reported positive operating income with improved net income margins. On top of that, the company’s strong cash reserves also highlight a solid balance sheet.

For the future, the analyst is cautiously optimistic about the third quarter and expects revenue growth and sales volume to exceed expectations. However, there are concerns about potential industry-wide demand and pricing pressures in the fourth quarter. Despite these challenges, Li Auto’s (NASDAQ:LI) valuation remains attractive compared to its peers, which is supported by its profitable track record and strong financials.

Li Auto’s (NASDAQ:LI) shares were held by 17 hedge funds with total positions worth $258.398 million. As of June 30, Renaissance Technologies is the biggest shareholder in the company and has a position worth $129.69 million.