By Michael Elkins
Morgan Staley reiterated an Overweight rating and $23.00 price target on Li Auto (NASDAQ:LI) following the Chinese electric car maker’s record-breaking December sales. LI reported sales of 21,233 units in December. Up 41% MoM and 51% compared to the same time last year. The December delivery brought Li’s 4Q deliveries to 46,319 units, coming in at the midpoint of company guidance of 45-48k units.
Deliveries of both the L8 and L9 exceeded 10k units in December despite supply challenges. Morgan Stanley analysts wrote in a note that they think “investors could give the company credit for its solid execution in meeting the founder’s upbeat target of Rmb10bn of monthly revenue by year end.”
During the recent Guangzhou Auto Show, Li Auto announced it will officially launch the L7, a five-seater SUV on Feb 8 and test drives will be available in Li Auto retail stores nationwide from Feb 9. The company is looking for its EREV lineup to act as the key volume driver in 2023.
Shares of LI are up 6.13% in pre-market trading on Tuesday.