Li Auto Stock Plummets 33% In 21 Sessions: What’s Behind The Decline?

(VIANEWS) – Li Auto’s stock price declined 33.52% in just 21 sessions from EUR45.88 to EUR30.50 as of 00:35 EST Tuesday. This decline followed three consecutive losses for Li Auto shares as the entire market experienced losses too – including an NASDAQ index decrease of 0.27% reaching EUR16,384.47 following Li Auto’s previous downward trend. Li Auto last closed with its closing price being EUR30.50 representing a 35.56% drop since their 52-week high of EUR47.33

About Li Auto

Li Auto Inc. is a Chinese electric vehicle manufacturer specializing in premium smart EVs. The company designs, develops, manufactures and sells MPVs and SUVs through its product lines; as well as selling cars directly. Li Auto also provides sales after-sales management services as well as technology development support as well as corporate management. Established in 2015 as Leading Ideal Inc. before changing to Li Auto on July 2020.

Yearly Analysis

Based on the available data, here’s an in-depth examination of Li Auto’s stock:

Li Auto’s stock currently trades at EUR30.50, significantly below its 52-week high of EUR47.33 but higher than its 52-week low of EUR20.80 indicating potential investment opportunities. Anticipated Sales GrowthThe sales growth projection for this company is impressive, with an anticipated compounded annualized growth rate of 70.8% this year and 33.7% projected for next year indicating potential business success. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)Li Auto’s Earnings Before Interest Tax Depreciation and Amortization (EBITDA) is 9.09 which indicates positive earnings before accounting for interest, taxes, depreciation and amortization expenses. Financial Expert OpinionBased on the available data, Li Auto seems like an attractive investment opportunity with strong sales growth projections and positive EBITDA projections. However, potential investors must also carefully consider factors like market conditions, competition and company management when making any investment decisions. Conduct further research and analysis in order to gain an in-depth understanding of a company’s financial health and overall market outlook. Investment Prospectus Lauto’s stock appears to offer an attractive investment outlook in the short to medium term due to its anticipated sales growth and positive EBITDA margin, however like any investment there are risks involved; so as with any significant decision it is essential that due diligence be performed prior to making decisions regarding investments or trading positions.

Technical Analysis

Li Auto’s stock price has been in a downward spiral, falling well below both its 50-day moving average of EUR33.12 and 200-day moving average of EUR35.83 – potentially signaling bearish sentiment for its stock in the short term.

This stock’s current volume of 8584370 may suggest there may be less enthusiasm among buyers for buying now.

Li Auto’s current intraday variation average has been negative over the last week, month and quarter; however, its highest amplitude of average volatility was 5.06% during its most volatile week (last week), suggesting there may be potential for price swings either way.

According to the stochastic oscillator, Li Auto’s stock is currently considered overbought (>=80), which could signal short-term correction in its market price.

Li Auto’s stock price appears to be under pressure at present, as multiple bearish indicators point towards potential downward momentum in the near future. Investors should proceed with caution and carefully track its performance for any signs of change in trend.

Quarter Analysis

Li Auto’s sales growth for this quarter stands at 74.4% and it is projected to drop down to 65% for next quarter, as growth estimates range between 283.3% and 60% respectively. Furthermore, Li Auto has experienced year-on-year quarterly revenue growth of 136.4% with current 12-trailing month revenue totalling 123.85B.

Equity Analysis

Li Auto’s financial performance presents a positive image, boasting a healthy return on equity and acceptable PE ratio. But investors should also keep other factors such as market conditions, competition and company’s growth potential in mind before making their decision to invest. For the best outcomes it is recommended to conduct additional research or seek professional advice before making their choice.

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