Amid reports of declining electric vehicle (EV) deliveries in China, Li Auto Inc (NASDAQ:LI) saw its shares plummet in premarket trading on Thursday.
Bernstein suggests that the recent dip in the stock was triggered by weaker-than-expected order intake for MEGA, Li Auto’s high-tech flagship family MPV.
Maintaining an Outperform rating, Eunice Lee set a price target of $52.50 for Li Auto, indicating faith in the company’s potential.
Despite a 30% rally post-strong fourth-quarter earnings, the stock has retraced around 20% since last Friday, presenting what Lee deems an attractive buying opportunity.
Market rumors suggest only approximately 4,000 non-refundable orders for MEGA, which falls short of market and internal targets, potentially resulting in monthly deliveries of 2,000 to 3,000 units.
Shares of Li Auto declined by 4.3% to $36.24 at the latest check on Thursday.
Embrace this opportunity and stay tuned for more updates in the exciting world of electric vehicles.