8 Fastest Growing Auto Stocks to Invest in Now

3. Li Auto Inc. (NASDAQ:LI)

Year-Over-Year Sales Growth: 42.25%

3-Year Sales Growth: 90.48%

Number of Hedge Fund Holders: 28

Li Auto Inc. (NASDAQ:LI) is a Chinese smart electric vehicle manufacturer. It makes electric SUVs and MPVs, with notable models including Li MEGA, Li L9, Li L8, and Li L7. The company also offers other services such as vehicle servicing, pick-up and delivery, data plans, and charging station installation.

On February 25, JPMorgan analyst Nick Lai upgraded the stock from Neutral to Overweight and also upgraded the price target from $22 to $40. The analyst noted that the decision was influenced by the unveiling of a photo of Li Auto’s second battery electric vehicle. Lai believes the i8 signifies Li Auto’s long-awaited BEV strategy. He anticipates Li Auto Inc. (NASDAQ:LI) sales volume will double to approximately 1 million units by 2027, with over 35% coming from new BEV models. Lai also noted the company leads in L2+ semi-autonomous driving technology compared to its Chinese competitors.

During the fiscal third quarter of 2024, the company grew its deliveries by 45.4% year-over-year to reach 152,831 vehicles. As a result, proceeds from vehicle sales grew 22.9% year-over-year with margins improving from 18.7% in Q2 2024 to 20.9% in the recent quarter. It is one of the fastest-growing auto stocks to invest in now.