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Here's Why Li Auto Jumped 11% Today

By Howard Smith - Jan 4, 2021 at 1:40PM

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Sales of electric vehicles in Chinese continue to grow rapidly.

What happened

Shares of Chinese electric-vehicle maker Li Auto ( LI -15.95% ) were up by about 11% as of 1:30 p.m. EST Monday. The company announced its December and full-year vehicle deliveries over the weekend, and the numbers are growing quickly.

So what 

The company delivered 14,464 vehicles in the fourth quarter, bringing its full-year total to 32,624. Deliveries in Q4 were 67% higher than in Q3, and December deliveries of the company's Li One SUV were up 530% year over year.

side view of blue Li Auto's One SUV

Li Auto One SUV. Image source: Li Auto.

Now what

Other Chinese electric-vehicle makers also reported strong delivery growth in December. NIO ( NIO -11.19% ) set a monthly record, more than doubling vehicle deliveries compared to a year prior. 

Li Auto will soon have more electric automaker competition as Tesla ( TSLA -6.42% ) launches its Model Y SUV in the country. The Li One SUV was designed to serve a specific niche in China: It includes a small gasoline engine onboard that can be used to recharge its batteries, allowing for longer travel between charging stations.

Li Auto opened seven additional retail stores in December and expanded its footprint to three new cities. It now has a presence in 41 cities in China. 

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Stocks Mentioned

Li Auto Inc. Stock Quote
Li Auto Inc.
$28.50 (-15.95%) $-5.41
Tesla, Inc. Stock Quote
Tesla, Inc.
$1,014.97 (-6.42%) $-69.63
NIO Inc. Stock Quote
NIO Inc.
$32.15 (-11.19%) $-4.05

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