Chinese luxury electric vehicle maker Li Auto stock delivered 34,914 vehicles for the month of August, marking a greater than 7x increase over the last year. This is well ahead of rivals such as Nio and Xpeng, which sold about 19,329 (81% year-over-year increase) and 13,690 (43% year-over-year increase). Li Auto is benefiting from robust sales of its high-end EVs which sport electric drivetrains along with a gasoline-powered range extender generator that helps to reduce range anxiety. While the company had only one vehicle model until 2022, it has since launched three vehicles including the Li L9, a luxury full-size crossover SUV, the Li L8, a luxury mid-size crossover, and the L7. These new vehicles are helping Li cater to a larger customer base, with each of its Li L7, Li L8, and Li L9 models surpassing 10,000 unit sales in August.
Interestingly, Li has had a Sharpe Ratio of 0.5 since early 2017, lower than 0.6 for the S&P 500 Index over the same period. This also falls short of the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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