Is Li Auto (LI) Among EV Winners of Trump’s Softened Stance on China Tariffs?

We recently published a list of 5 EV Winners Of Trump’s Softened Stance On China Tariffs. In this article, we are going to take a look at where Li Auto Inc. (NASDAQ:LI) stands against other EV winners of Trump’s softened stance on China tariffs.

Donald Trump had a busy first day in office, revoking former President Biden’s executive orders and announcing new measures that continue to send shockwaves through multiple industries. One thing missing from his remarks was tariffs on China, something that was a big part of his election campaign.

Has Trump’s stance on China tariffs softened now? Is this a strategic move to tone down his aggressive stance on China in order to continue business relationships with the Asian country? We believe the President is intentionally taking a softer stance and this sentiment is echoed by Chinese stocks as well. We looked at some Chinese EV stocks that enjoyed a good day of trading in the absence of tariffs on China on Tuesday.

To come up with the list of 5 EV winners of Trump’s softened stance on China tariffs, we only considered stocks with less than a $25 billion market cap.

A factory worker welding a car body with precision.

Li Auto Inc. (NASDAQ:LI)

Li Auto Inc. (NASDAQ:LI) is a little-known but highly successful EV maker that could provide serious competition to the likes of Tesla and BYD. The company’s third-quarter deliveries were up 45% YoY, coming in at 152,831 vehicles. The sales grew at a growth rate of 28.4%.

The EV maker is also pursuing AI ambitions. It incorporates AI technology into its vehicles to achieve autonomous driving. Apart from that, it has serious ambitions in robotics and other AI technologies as well. Li Auto’s (NASDAQ:LI) investments in AI integrations in its vehicles give it a head start over competitors.

Li Autos stock is so undervalued that it trades just around one times sales. The obvious risk is that it is a Chinese stock and could become entangled in a trade war. However, when Trump didn’t double down on China tariffs on his first day in office, the stock went up by over 5%, signaling further upside ahead.

Overall, LI ranks 5th on our list of EV winners of Trump’s softened stance on China tariffs. While we acknowledge the potential of LI as a leading AI 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 as promising as LI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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