With the U.S. market obsessing over the “Magnificent Seven” stocks last year, investors sometimes overlooked great growth opportunities. Among the most promising picks for 2024 is China-based electric vehicle (EV) manufacturer Li Auto (NASDAQ:LI). Wall Street didn’t spend much time focusing on LI stock, but get ready for Li Auto to grab the limelight in the new year.
At the end of 2023, Li Auto stock didn’t even break above its 2020 peak price. It seems like the market is completely ignoring Li Auto’s upcoming EV lineup launch.
Yet, it will be impossible to ignore Li Auto if the automaker continues to accelerate its vehicle sales. So, are you on board with Li Auto now, or will you only pay attention after the stock takes a moonshot in 2024?
LI Stock Is a Gem That Many Investors Haven’t Discovered Yet
Li Auto doesn’t receive a lot of press coverage in the U.S. Perhaps it’s because the company is a foreign automaker. This might explain why LI stock isn’t a darling on Wall Street despite Li Auto’s positive points.
I encourage American financial traders to broaden their horizons. Li Auto was profitable in the first three quarters of 2023, and will almost certainly remained profitable in the fourth quarter. In other words, we’re not talking about a capital-bleeding EV startup here.
Furthermore, here’s a fact that you might not be aware of. I learned from InvestorPlace contributor Larry Ramer that Li Auto sells many more EVs in China than Tesla (NASDAQ:TSLA) does.
Again, out-of-the-box thinking can benefit you as an investor in 2024. Just because Tesla is a dominant force in the U.S. EV market, this isn’t necessarily the case in other countries. As Ramer explained, “Chinese consumers appear to be enamored with Li’s EVs, which feature a fuel tank that can recharge their batteries if necessary.”
New EV Lineup Could Boost Li Auto’s Already Impressive Sales
The skeptics can’t deny Li Auto’s astounding EV delivery growth in November. During that month, Li Auto’s vehicle deliveries rose 172.9% year over year to 41,030 units.
However, Li Auto’s EV sales figures might be even more spectacular in the coming year. That’s because the automaker is about to introduce a potentially game-changing vehicle lineup.
Here’s the scoop. Li Auto announced that it plans to launch its flagship multi-purpose vehicle, called Li MEGA, on March 1. Moreover, the company will begin delivering the MEGA vehicles in “early March.”
As reported by Reuters, the MEGA will be Li Auto’s “first model produced at its Beijing plant,” as well as the automaker’s “first fully electric car” (as opposed to hybrid-electric vehicles). Thus, the MEGA’s launch will represent a major turning point for Li Auto.
Reuters also reported that the MEGA will have an “estimated price of under 600,000 yuan” or $84,533.24. It will be interesting to see if Li Auto adjusts the MEGA’s price to make it more affordable. So, keep your eyes peeled for further developments on Li Auto’s mega-launch of a fully electric vehicle for the new year.
Open Your Mind and Broaden Your Portfolio With LI Stock
Some U.S.-based financial traders might be reluctant to give international investing a try. Yet, I encourage people to take a close look at Li Auto. It’s a profitable automaker that actually seems to be better positioned in China’s EV market than Tesla.
Besides, Li Auto’s November vehicle delivery growth is undeniable, and the company is about to launch an intriguing new line of EVs. Consequently, investors should consider grabbing a handful of LI stock shares before Wall Street finally appreciates Li Auto’s full potential in 2024.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.