Li Auto Shares Soar on Robust Orders for Latest L6 SUV Model
Li Auto Stock Jumped Monday
Demand for electric vehicles in China is still strong for some model types. By all accounts, there's a surplus of electric-vehicle (EV) production in China. This lack of demand could partly be caused by China's sputtering economy. But one new vehicle from Li Auto (NASDAQ: LI) is showing there's still strong demand for the right EV products.
Reports of strong orders for the company's latest vehicle, launched just last month, has Li Auto shares surging Monday morning. Shares jumped as much as 7% and were still trading 4.3% higher as of 10:25 a.m. ET. The move extends the momentum behind the stock in the weeks since the company launched its new L6 five-seat premium SUV.
EV demand isn't dead. Li Auto introduced its new SUV on April 18 as its first vehicle priced below 300,000 yuan, with both trims costing below the equivalent of $40,000. The large SUV is a family-oriented vehicle with a smart entertainment system and the ability to fold seats into a bedding area.Now, Li Auto has reported orders surpassing 41,000 units, indicating strong demand for the model. The company's unique approach of combining a pure EV with a gas engine seems to resonate with consumers, showcasing potential for sustained growth.
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