Why Li Auto Inc. (LI) Soared on Wednesday

We recently compiled a list of the 10 Stocks Outperform Wall Street Indices on Wednesday. In this article, we are going to take a look at where Li Auto Inc. (NASDAQ:LI) stands against the other stocks.

The stock market ended on a mixed note on Wednesday, with the Dow Jones the sole loser during the session, as investor caution persisted amid confusing tariff policies from President Donald Trump.

The Dow Jones dropped by 0.43 percent, while in contrast, the S&P and Nasdaq finished in the green territory, albeit the S&P inched up by only 0.01 percent, and the Nasdaq ended higher by 0.26 percent.

On Wednesday, Trump raised hopes for another month of delay for the imposition of tariffs on goods from Mexico and Canada, while signaling a 25-percent reciprocal tariff on European cars and goods.

Meanwhile, ten companies defied the broader market pessimism, posting modest to strong gains during the day.

To come up with Wednesday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A factory worker welding a car body with precision.

Li Auto Inc. (NASDAQ:LI)

Li Auto Inc. (NASDAQ:LI) rose anew on Wednesday, jumping 10.30 percent to end at $32.92 apiece as investors resumed buying following the sneak peek of its new vehicle model which would kick off a new “intelligent” series.

Earlier this week, Li Auto Inc. (NASDAQ:LI) said it would launch a new series of vehicles called the I series, a smart driving system promising both innovation and intelligence.

A sneak peek of the first variant, Li i8, has already been announced earlier this week, albeit details on the pricing and the official launch date were yet to be divulged.

Li i8 will complement the carmaker’s existing electric SUVs under the L series and the MEGA premium MPV.

It also forms part of the LI product roadmap, where it plans to launch five range-extended electric vehicles. Apart from the i8, the company will also launch the i6, i7, and i9.

Overall LI ranks 4th on our list of Wednesday’s top gainers. 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 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.