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Is Li Auto Inc. (LI) The Best EV Stock to Buy According to Billionaires?

We recently compiled a list of the 15 Best EV Stocks To Buy According to Billionaires. In this article, we are going to take a look at where Li Auto Inc. (NASDAQ:LI) stands against the other EV stocks.

The year 2024 marked a significant milestone for environmentally friendly vehicles in the US. On January 16, 2025, CNBC reported that for the first time, sales of all-electric vehicles and hybrid models made up 20% of all new car and truck sales. Motor Intelligence reported that over 3.2 million electrified vehicles were sold last year. This included 1.9 million hybrid vehicles and 1.3 all-electric vehicles.

Traditional vehicles with gas or diesel engines continued to dominate the market, accounting for 79.8% of sales. However, this marked the first time their share fell below 80% in modern automotive history.

READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 High Growth Energy Stocks To Invest In.

In the US, the EV market is very competitive. Out of 68 mainstream electric models tracked by Kelley Blue Book, 24 models posted an increase in sales compared to the previous year while 27 models experienced a decrease in sales volume. Additionally, 17 new models were introduced to the market.

There is not enough clarity as to how sales of all-electric and hybrid electric vehicles will perform in 2025. This uncertainty is partly due to pending potential actions by the Trump administration. However, Cox Automotive expects that 2025 will set another record for EV sales, with EVs accounting for about 10% of new vehicle sales. Including hybrids, Cox Automotive expects one out of every four vehicles sold to be electrified in 2025.

Methodology

To compile our list of the 15 best EV stocks to buy according to billionaires, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. Next, we focused on the top 10 EV stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 15 best EV stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.

Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Two brightly colored electric vehicles parked neatly in a row next to a state-of-the-art manufacturing facility.

Li Auto Inc. (NASDAQ:LI)

Number of Billionaire Investors: 8

Number of Hedge Fund Holders: 28

Li Auto Inc. (NASDAQ:LI) is a Chinese company that designs, develops, and manufactures premium smart EVs. The company is focused on in-house development efforts on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions. According to billionaires, Li Auto Inc. (NASDAQ:LI) ranks among the best EV stocks to buy.

The company is strategically expanding its product lineup to target a broader user base. On February 28, JPMorgan analyst Nick Lai upgraded the stock rating of Li Auto Inc. (NASDAQ:LI) from “Neutral” to “Overweight” and raised the price target from $22 to $40. The decision followed a 25% rise in the stock price after the company unveiled a photo of its new battery electric vehicle, the i8, on February 25. Lai believes that Li Auto Inc. (NASDAQ:LI) will officially introduce the i8 around the time of the annual Shanghai Auto Show, which starts on April 25. The company also aims to introduce more battery-electric models, like i6, i7, and i9, over the next year and a half. These new models are expected to help Li Auto Inc. (NASDAQ:LI) double its sales volume to around 1 million vehicles by 2027, with over 35% coming from these new battery-electric models. Additionally, Lai believes that Li Auto Inc. (NASDAQ:LI) is leading in the development of Level 2+ semi-autonomous driving technology among its Chinese peers.

Overall, LI ranks 12th on our list of the cheap tech stocks to buy according to hedge funds. While we acknowledge the potential of LI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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